Barrick Mining on Monday announced the departure of CEO Mark Bristow, effective immediately. He was originally chosen for the job in 2019.Melissa Tait/The Globe and Mail
Mark Bristow spent his six-plus years as chief executive officer at Barrick Mining Corp. ABX-T telling investors how smart he was, and how dumb his rivals were.
When smaller domestic players such as Agnico Eagle Mines Ltd. or Kinross Gold Corp. paid up to acquire mines in stable jurisdictions, you could count on Mr. Bristow to sound off on the industry’s track record for value-destroying takeovers.
Mr. Bristow was equally blunt in his assessment of his peers’ operating abilities. Shortly before taking the helm at Barrick in 2019, the then-CEO of Randgold Resources Ltd. told a conference: “The one thing this industry does very well is mine gold at a loss.”
The Australians have a slang expression for CEOs who are full of themselves, like the 66-year-old Mr. Bristow: Figjam. It fits.
If you’re going to slag rivals while boasting about your own prowess, you better deliver. At Barrick, the South Africa-born Mr. Bristow failed to perform. Which is why the company announced his departure, effective immediately, early Monday.
Barrick sells only Canadian mine to Carcetti Capital for up to $1.09-billion
Toronto-based Barrick announced Mark Hill, who joined the company in 2006 and was running its Latin American and Asia Pacific operations, is the new group chief operating officer and interim president and CEO. The board and executive search firm Egon Zehnder will consider internal and external candidates for the next leader.
The irony is whoever takes the helm scores the opportunity of a lifetime, as beaten-down Barrick is poised to develop one of the largest gold discoveries of this century, the Fourmile project near its existing mines in Nevada.
Monday was a tough day for mining executives, as Newmont Corp. NGT-T, the world’s largest gold producer, announced CEO Tom Palmer will retire in December after six years in the top job. In contrast to the abrupt change at Barrick, succession at Newmont is playing out smoothly, with president and second-generation miner Natascha Viljoen named the new CEO.
Barrick executive chair John Thornton, former president of Goldman Sachs Group Inc., takes a hands-on approach to governance. The press release announcing Mr. Bristow’s departure made it clear the Barrick board expected more from a CEO who earned US$11.8-million last year.
“The board is committed to both finding the right leader to fully capitalize on Barrick’s world-class assets and capabilities, and to driving improved performance, growth and shareholder value,” Mr. Thornton said.
In 2019, Mr. Bristow won the top job at Barrick when the company joined forces with Randgold in a merger of equals. Barrick didn’t pay a premium to marry up with a far smaller miner.
Mr. Bristow waxed evangelical on the merger-of-equals approach to acquisitions and steered clear of bidding wars that played out on his watch. For a time, the cautious approach sat well with a Barrick board scarred by a massive writedown from the 2011 takeover of copper miner Equinox Minerals Ltd.
While Barrick sat on the sidelines, or dropped out of auctions as bids began to climb, Agnico Eagle, Kinross and Newmont bulked up their reserves with a series of takeovers. Several of the deals resulted in short-term hits to the buyers’ stock price.
Two years ago, gold prices began to climb and so did the shares at rival miners. Agnico replaced Barrick as the country’s largest gold company, Newmont became the industry’s global champion.
As pure play gold miners prospered, Mr. Bristow did himself no favours with investors by talking up the logic of joining forces with copper producer Freeport McMoRan, a deal that never saw the light of day.
Barrick takes $1-billion writedown on Mali operations as government dispute drags on
Mr. Bristow, whose hobbies include charity motorcycle safaris across Africa, spent his years at Barrick navigating seemingly endless battles with governments over payments from properties in Tanzania, Papua New Guinea and Mali, disputes that often led to mine shutdowns.
For all Mr. Bristow’s bluster about his operating expertise, the company’s flagship Nevada mines produced gold at stubbornly high operating costs. Over the past two years, Barrick’s valuation – its stock price as a percentage of its net asset value – fell from middle of the pack to the bottom ranks for senior producers.
Mr. Thornton takes the private equity approach to governance at public companies. He’s actively involved in the company’s operations. The same is true of former Shell PLC CEO Ben van Beurden, named lead independent director at Barrick in May.
In May, as Mr. van Beurden took on a new role, the Financial Times reported Barrick’s board had launched a search for a new CEO. Mr. Bristow responded by saying he expected to hold the job for three more years. He lasted four more months.
Barrick’s next CEO will inherit a company that needs to back up the boss’s bragging.