A loyal and technically competent management team is the essential ingredient in any growing mining company, Peggy Witte, president of Royal Oak Mines (TSE), told a recent gathering of the Toronto branch of the Canadian Institute of Mining, Metallurgy and Petroleum.
Chosen for her success in acquiring two old, high-cost producers and turning them into profitable operations in less than one year, Witte spoke on the subject of “building an aggressive mining company.”
“Managers have to have the logo of the company stamped on their forehead,” Witte said. She added that the best way to attract loyal managers is to offer stock options.
Run by a small group of women and men, all with technical degrees under their belts, Royal Oak increased gold production at its Yellowknife and Timmins gold mines by 10% while cutting cash costs by $US68 per oz. in 1991. The company plans to increase production from last year’s 194,952 oz. to 320,000 oz. per year with a July startup of the Hope Brook gold mine in Newfoundland.
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