Some investors do not want the directors responsible for a struggling 2019 acquisition representing them in talks with a Kerry Stokes-backed gold play.
A big investor in gold miner St Barbara has called for a boardroom overhaul, raising concerns about chairmanrole at a rival and declaring no confidence in directors who approved a floundering 2019 acquisition.
Mr Netscher has been chairman since July 2015, David Moroney joined as an independent director in March 2015 and Kerry Gleeson was appointed as an independent director in May 2015.Stef Loader joined the board in November 2018 about seven months before the Atlantic acquisition and managing director Craig Jetson was appointed after the Atlantic deal in February 2020.
Mr Cranfield said a consolidation of the Leonora province – where companies such as Red5, Dacian Gold, Kin Mining, Gold Fields, Genesis and Northern Star have assets – could make sense in theory, but he said Genesis was not the most attractive partner for St Barbara in the region. “We should just say to Raleigh, ‘Go and build your company and get some real assets and maybe we will talk then’.”Baker Steel Capital managing partner David Baker said he had urged the St Barbara board to consider a combination with established gold miner Regis Resources.
Despite the Dacian stake, Mr Netscher played down the notion there could be a conflict of interest between his two chairmanships. “All directors flag any potential conflicts and are recused from any debate or discussion on the relevant matter. These potential conflicts and their management are always fully documented.”“The board remains convinced that Atlantic was an investment that was in the best interest of the shareholders and that it will generate meaningful and differentiating returns,” he said in a statement.