West Africa-focused gold miner Avocet Mining has revealed that its Chief Executive Officer (CEO) is to resign and will be replaced by the group's Chief Operating Officer (COO).
CEO Brett Richards will stand down with immediate effect, Avocet announced on Thursday, just one month after the firm scaled back its 2012 production guidance from 160,000 ounces to 135,000-140,000 ounces on the back of issues related to equipment availability which affected mining rates and capacity.
Since the update on June 29th, the stock has tanked, dropping from around 150p to just 69.2p by Wednesday's close.
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Russell Edey, Avocet's Chairman, said: "Over the last two years Brett has played a central role in transforming Avocet from a South-East Asian mining company to an established West African gold mining and exploration company.The board would like to thank him for these contributions and wish him every success going forward."
David Cather, who joined Avocet as COO in May, will now succeed Richards. His career has included senior roles at Anglo American, Redland Aggregates (now Lafarge) and De Beers.
"As the company enters its next phase of development, ensuring operational success at Inata will be critical to underpinning Avocet's continued growth. David's strong operational focus will lead the experienced on-site management team to ensure delivery on this growth strategy," Edey said.
Investors were pleased with the news, with shares rising 1.23% to 70.05p in early trading.
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