James takes helm at Inmet Mining

If William James lives up to his reputation as savior of struggling Canadian mining companies, Inmet Mining (IMN-T) may finally succeed in fulfilling shareholders’ expectations.

The board of Inmet has appointed the 67-year-old James president and chief executive officer, replacing Klaus Zeitler. James will relinquish his post as president of Denison Mines (DEN-T) as soon as a successor is found.

“This is a result of discontent expressed by the shareholders,” explains Raymond Goldie, former mining analyst for Richardson Greenshields. “To bring in someone with such a good record will certainly be seen as a positive move.” Over the past decade, James has established a track record for assuming the management of troubled operations and transforming them into profitable outfits. In 1982, he took charge of a money-losing Falconbridge. When that company, which became profitable, was swallowed by Noranda in 1990, he was hired to rescue Denison from bankruptcy.

He succeeded. Last year Denison enjoyed earnings of almost $16 million, compared with a loss of $291 million in 1990.

“Now that the capital restructuring is complete and Denison is on a positive course in both oil and uranium, I feel my mandate is fulfilled,” he says. “I don’t know a lot about [Inmet], but I will try to make it work a little better,” he adds.

Inmet, the offspring of a marriage between Minnova and Metall Mining, is a copper, zinc and gold producer with operations in just about every corner of the world. Along with equal partner Rio Algom (ROM-T), Inmet recently won the right to develop the huge Antamina copper-zinc deposit in Peru.

As a result of lower copper prices and mine production, however, Inmet lost $14.1 million (19 cents per share) in the first six months of 1996. Its share price has been stuck in the $9-12 range for the past two years.

Weary of the company’s lacklustre performance, shareholders, led by the Ontario Teachers Pension Plan Board, demanded that a special committee be formed to investigate shareholder value. Inmet has received the committee’s final report and will send it to James for review.