Gold miner AngloGold Ashanti (AU: Quote) Tuesday said its Chief Executive Officer Mark Cutifani has resigned to become the Chief Executive Officer of Anglo American Plc (AAL.L,AAUKY.PK), effective April 3. Cutifani will remain in his position until March 31.
The Board of Directors, under Chairman Tito Mboweni, has initiated a formal search for a new CEO. The board will consider both internal and external candidates for the role.
Cutifani was appointed to the board of the company in September 2007 and became Chief Executive Officer on October 1, 2007. He is chairman of the Executive Committee and a member of the Transformation and Human Resources Development, Safety, Health and Sustainable Development, Risk and Information Integrity and Investment committees.
Cutifani has been associated with the industry since 1976. Prior to joining AngloGold Ashanti, he was chief operating officer at CVRD Inco, a Toronto-based company, where he was responsible for Inco's global nickel business.
It was on November 26, 2012 that Anglo American said Cynthia Carroll has decided to step down as its chief executive, with board's agreement. She will remain with the company until the appointment of a successor and an appropriate transition has taken place, the firm said then.
Carroll was also the chairman of Anglo American Platinum and De Beers. She will also relinquish those roles when she steps down as chief executive of Anglo American.
AngloGold Ashanti today said its Chief Financial Officer Srinivasan Venkatakrishnan (Venkat) and Executive Vice President Business & Technical Development Tony O'Neill would act as joint interim CEOs, after Cutifani leaves and until a new CEO is appointed.
Venkat will be responsible for Finance and Corporate functions and Tony O'Neill will be responsible for all Operations, Projects and Technical functions.
Venkat has held positions at AngloGold and Ashanti Goldfields since 2000 and has been Chief Financial Officer of the company since 2005. AngloGold was spun off from Anglo American in 1998.
Tony O'Neill, who will join the board of directors in coming weeks, joined AngloGold Ashanti in 2008. He has had an extensive career in mining since 1978. Both of them have indicated to the company's board that they are not planning at this time to put themselves forward for the position of CEO.
Commenting on Cutifani's departure, Mboweni, said, "I would like to thank Mark for five years of inspirational leadership, during which time he transformed the business. Mark led a significant operations and financial turnaround with industry-leading returns, and built a leadership team with outstanding breadth and depth."
Since AngloGold Ashanti launched its new strategy under Cutifani in 2008, safety improved by around 70 percent, the hedge book has been eliminated and the balance sheet was rebuilt. The operating performance of several key assets improved and key growth projects are scheduled to start production in the next 12 months.
AngloGold Ashanti's Earnings before interest, tax, depreciation and amortisation almost tripled over that time, outpacing gains in the gold price. Mark also initiated a business improvement and people-focused intervention called Project One, which continues to drive stability and improved performance across the business.
AU settled on the NYSE down by 0.6 percent on Monday at $29.87.
AAL.L closed at 2,000.50 pence on Monday.
by RTT Staff Writer
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