Endeavour Mining Plc, a leading gold producer in West Africa, is facing a significant stock plunge following the dismissal of its CEO, Sébastien de Montessus, over allegations of serious misconduct and fraud.
The London-based company announced that it had discovered an alleged irregular payment instruction of $5.9 million related to the sale of a company asset, which de Montessus had authorized without informing the board. This revelation sent shockwaves through the market, resulting in a sharp drop in Endeavour’s shares.
The news of de Montessus’s departure led to a 12% drop in Endeavour’s shares in London on Friday, after a 10% fall in Toronto on Thursday. The company’s market capitalization dropped by about $1 billion, erasing the gains it had made since listing on the London Stock Exchange in June last year.
Endeavour Mining, backed by Egyptian billionaire Naguib Sawiris, operates gold mines in Senegal, Ivory Coast, and Burkina Faso. It has been among the most acquisitive mining companies in recent years, having bought Teranga Gold Corp. and rival Semafo Inc. in 2020.
The sudden leadership change has raised questions about the company’s governance and transparency, as well as its future direction and performance. Analysts are closely watching the situation, and the market’s reaction could have far-reaching implications for the company and the wider mining industry.
Despite the challenges, Endeavour Mining remains committed to its vision of becoming the leading West African gold producer. The company has named Ian Cockerill, a veteran of the mining industry and its deputy chairman, as the new CEO, effective immediately.
Cockerill, who previously served as the CEO of Gold Fields Ltd. and Anglo Coal, a subsidiary of Anglo American Plc, said he was looking forward to leading Endeavour through this pivotal time and continuing its growth strategy.
Endeavour Mining has also reaffirmed its commitment to sustainability and environmental, social, and governance (ESG) goals. The company increased its ESG spending by 83% in 2022, achieved a net zero carbon footprint across its operations, and launched several initiatives to support its host communities.
Despite the current turmoil, the company remains hopeful for the future. With a strong and experienced management team in place, Endeavour Mining is confident that it can navigate through these challenging times and continue to deliver value to its shareholders and stakeholders.
Source: Mining.com
