Gold Fields CEO Griffith leaves after failed Yamana takeover

Gold Fields’ (JSE, NYSE: GFI) chief executive officer Chris Griffith is stepping down on Dec. 31, only a month after the company’s failed attempt to take over Canada’s Yamana Gold (TSX: YR; NYSE: AUY).

Griffith, 57, was appointed CEO of the South African gold miner in April 2021, taking over from Nick Holland, who retired after 13 years. Griffith had previously held the top job at Anglo American Platinum and Kumba Iron Ore.

Under his direction, Gold Fields kicked off plans to expand into North America, beginning with the attempted acquisition of Yamana. Two Canadian miners, Agnico Eagle Mines (TSX: AEM; NYSE: AEM) and Pan American Silver (TSX: PAAS; NASDAQ: PAAS), teamed up in late October and put a higher bid on the table, finally trumping Gold Fields’.

Martin Preece, 54, who runs the company’s South Deep gold mine in South Africa, will take the role of interim CEO, while the board searches for a new boss.

“The Yamana setback should not be allowed to impede the company’s strategy,” Griffith said in an emailed statement. “As a CEO I felt that I should take responsibility and allow the company to move forward under new leadership unencumbered by the Yamana transaction.”

“We were all disappointed that the Yamana deal did not go through, as we felt it was a compelling deal which would have created a strong company and created value for all our shareholders,” chair Yunus Suleman noted.

Salares Norte project in Chile. (Image courtesy of Gold Fields Chile.)

Shares in Gold Fields, which operates nine mines across Australia, Peru, South Africa and West Africa, dropped a fifth on the day the bid was announced in May but bounced back by a similar percentage in November, when the deal was called off. 

The Yamaha takeover would have created the world’s fourth-largest gold miner, surpassing Agnico Eagle. 

Gold Fields currently has only one mine left in the home country — South Deep. Its portfolio includes three operations in Ghana, the Cerro Corona mine in Peru, and the Salares Norte project in Chile.

In defending the Yamana deal, Griffith had said that Gold Fields’ gold output was in decline and that the addition of fresh assets to lift production was crucial.

The Johannesburg-based miner has guided 2.3 million oz. of gold production for this year, increasing to 2.8 million in 2024. After that, output could fall to a low of 2.1 million per year by 2030 without a deal that enhances the company’s portfolio.