Beadell farewells senior managers in bid to slash costs; shares gain 12pc
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Gold producer Beadell Resources has farewelled two senior managers and changed up its board as part of a cost-cutting exercise.
Chief Simon Jackson and COO Peter Holmes have agreed to step down from their current positions, Beadell told investors this morning.
Dr Nicole Adshead-Bell, who has been a non-executive director of Beadell since September 2016, has taken over as head of the group.
Investors seemed to like the news, pushing shares up nearly 12 per cent to an intra-day high of 5.7c.
The move is also aimed at helping Beadell achieve its goal of attaining a primary listing in Canada.
Dr Adshead-Bell is a geologist with 20 years of minerals experience, including 10 years as an independent director for Toronto Stock Exchange (TSX), New York Stock Exchange, London Stock Exchange (AIM) and ASX-listed companies.
She is an independent director on the board of TSX and AIM-listed Dalradian Resources and TSX and NYSE listed Pretium Resources.
Craig Readhead has stepped down from his role as chairman, but will remain a non-executive director.
Brant Hinze, who is currently a director of Beadell and lives in the United States, has assumed the role of chairman.
Beadell struck a deal in March to merge with Canada’s Golden Harp Resources (TSX-V:GHR.H), but in late June said the transaction would no longer go ahead.
Instead it is now in talks with The Bell Capital Corp (TSX-V:RTB.P) regarding a tie-up.
Bell Capital is a capital pool company with no assets other than $C800,000 ($818,920) in cash.
Beadell is aggressively trying to cut its costs and in June said it was cutting ties with its Australian mining services contractor and sticking with its Brazilian contractor.
The company says the move will save it $US100 million on mining costs for its Tucano operation over the life of mine.
It is also expected to lower Beadell’s administrative costs by an additional $US1 million each year.
By getting rid of its COO, the company says it will save nearly $600,000 each year. The new CEO is also getting a 52 per cent lower cash salary.
A further saving of $700,000 will come from cutting back staff at Beadell’s Rio de Janeiro office from 14 to four and moving one position to the Tucano gold mine.