VANCOUVER (miningweekly.com) – Precious metals producer Primero Mining announced late on Thursday that the company and president and CEO Ernie Mast have agreed that Mast will leave the company by no later than March 6.
He will be succeeded by former CEO Joseph Conway in the interim. Mast will help with the transition process and will leave to pursue other opportunities.
Conway is the current vice-chairperson of the board and served as Primero’s president and CEO from June 2010 to January 2016.
Prior to that, he was president and CEO of Iamgold from 2003 to 2010.
“We view this development as a further negative and potentially signals a weaker outlook for the company. We believe the stock will continue to underperform until there is more clarity on a potential resolution with the striking union at its flagship San Dimas mine or on the advanced pricing agreement at San Dimas as it pertains to taxes,” Desjardins Capital Markets analyst Michael Parkin said in a note to clients.
Primero's TSX-listed stock listed lost about 60% in value in the past 12 months, dogged by operational challenges at San Dimas, a tax dispute with Mexican authorities and potential impending write downs at both the company’s operating assets.