Chairman of Petropavlovsk steps down

Peter Hambro, chairman of gold miner Petropavlovsk, has stepped down. The decision was made on the back of a shareholder revolt, but the founder of the Russian company held his ground against corporate governance criticisms.

Despite resigning, he will stay on as executive director until the turnaround process is complete, according to CityAM. The paper also reported that an independent non-executive chairman will join after the annual general meeting on June 20th in the interim.

The push to give Hambro the boot allegedly came from the combined power of three shareholders, including Viktor Vekselberg, owner and president of Russian conglomerate Renova Group. The other two shareholders are Sothic Capital and M&G Debt Opportunities Fund. They cited Hambro’s lack of focus on corporate governance as reasons for the push, but Hambro told CityAM that their criticisms were “fantastically broad” and said his decision to retire was previously announced with year-end results.

The Financial Times reported Hambro suggested that he was due to retire anyway, and that the three shareholders paid a proper price to secure control of Petropavlovsk, rather than influencing the company by nominating candidates to its board.

The FT went onto to report that Petropavlovsk’s shares closed down 0.7 per cent at 7.5p on Monday, commenting that a bull run in gold prices propelled Petropavlovsk to a market capitalisation of more than £2bn in 2010, but the company’s shares have fallen 99 per cent from their peak.

Photo: Peter Hambro at Mines and Money London 2015. Credit: Mines and Money, licensed under CC BY-NC 2.0 (edited)

Link to this article: : http://www.goldmadesimplenews.com/mining/chairman-of-petropavlovsk-steps-down-13147/

Posted by on May 16 2017. Filed under Gold News, Mining. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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