Two years ago, James Anderson was a dissident shareholder who initiated a proxy vote to replace three board members of Genco Resources (GGC-T) over concerns of excessive compensation, poor mine management and a lack of corporate governance policies, and now, he’s been appointed as chief executive of the company.
Genco operates the La Guitarra underground silver mine in the Temascaltepec mining district 130 km from Mexico City. The operation has a 320 tonne per day mill but was operating between 180-250-tonnes per day before operations were shut down due to labour issues in October 2008.
Production finally resumed in May 2010 and in that time, the Genco has had to overcome various disputes and litigation with Andover Ventures, Chief Consolidated Mining and former director Gordon Blankstein. Much of the management and board of directors has also changed since then.
In March, it was agreed that Andover would pay Genco a $5-million settlement fee.
At the time of the proxy battle, Anderson, together with his wife, was Genco’s largest shareholder with 12.2% of shares, and remains the largest shareholder today.
Back in 2008, the company had plans to expand operations to 3,000 tonnes per day by 2010. The company will now start looking at expanding operations again.
Genco shares are currently trading at 38¢, up 1.5¢ today, on a trading volume of 252,000 shares. Two years ago, when the proxy battle was initiated, Genco shares were trading at $1.91 apiece with a 52-week rolling high of $4.70 and a low of $1.71 per share. The company has 90.3 million shares outstanding.
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