Resolute Mining Ltd (ASX: RSG) shares are having a disappointing start to the month.
In morning trade, the ASX gold stock is down over 8% to 38 cents.
This means that its shares are now down approximately 40% over the past six months.
Image source: Getty Images
Why is this ASX gold stock sinking today?
The catalyst for today's weakness has been the shock exit of the gold miner's CEO this morning.
According to the release, Terry Holohan is leaving his position as CEO and managing director, and as a director of the company, with immediate effect.
Holohan took a leave of absence from 13 December 2024 until 31 January 2025 to spend time with his family following events in Mali. However, it seems that he has decided against returning from his leave and will exit the company instead.
What happened in Mali?
Holohan was one of three executives that were detained in Mali late last year by government officials.
At the time, the company advised that its executives were in the capital, Bamako, to hold discussions with the mining and tax authorities. This was regarding general activities related to the ASX gold stock's in-country business practices, and to progress open claims made against Resolute, which the company believed to be unsubstantiated.
Since then, Resolute Mining has agreed to pay US$160 million to the Malian government to help settle matters. Though, it is still in the process of having detailed discussions with the government regarding the long-term future of Resolute's operations in Mali. This includes the migration of the company's assets in Mali to the 2023 Mining Code.
What's next?
The ASX gold stock's acting CEO, Chris Eger, will formally assume the role of CEO and will also join the board of directors.
He has been the CFO at Resolute since joining the company in February 2023. The company notes that he has over 25 years of experience leading strategic, financial, and commercial functions of businesses in the natural resources and financial sectors.
Replacing Eger will be Resolute Mining's acting CFO, Dave Jackson, who will formally assume the role of CFO this week.
Commenting on the changes, the ASX gold stock's non-executive chairman, Andrew Wray, said:
Over the last three and a half years, first as COO and since May 2022 as CEO, Terry played an important role in the team that has improved operational performance across our business, particularly at Syama which is now positioned to deliver on its significant potential. We thank Terry for his contribution, and we wish him all the best for the future. In Chris and Dave, we have a team who have worked closely with Terry over the last two years and have the expertise and knowledge to help realise the full potential of our assets for the benefit of all stakeholders.
