ASX 200 gold stock tumbles on surprise CEO exit

The world's largest gold miner is having a change of leadership.

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Key points

  • Newmont's shares are under pressure as the CEO, Tom Palmer, announced his retirement, with COO Natascha Viljoen set to succeed him starting January 1st.
  • The transition is part of a long-term leadership development and succession plan, with Viljoen bringing over 30 years of mining industry experience, including roles at Anglo American and Lonmin.
  • Viljoen aims to focus on operational excellence, cost discipline, and capital allocation to enhance Newmont's financial performance, intending to further strengthen and simplify the company's operations.

Newmont Corporation (ASX: NEM) shares are failing to climb with the rest of the gold industry on Tuesday.

In morning trade, the ASX 200 gold stock is down over 3% to $127.93.

As a comparison, the S&P/ASX All Ordinaries Gold index is up 1.2% at the time of writing.

Why is this ASX 200 gold stock falling?

The catalyst for today's weakness is news that the gold miner's CEO is stepping down from the role at the end of the year.

According to the release, Tom Palmer will retire from his role and as a member of the board of directors on 31 December.

But, as part of Newmont's long-term leadership development and succession processes, the board of directors has been engaged in on-going discussions regarding CEO succession planning.

As a result, the ASX 200 gold stock has already identified Mr Palmer's replacement.

The release reveals that chief operating officer Natascha Viljoen will succeed Palmer as president and CEO of the company, effective 1 January. Ms. Viljoen will also join the company's board as a non-independent director on the same date.

Commenting on his exit and his replacement, Tom Palmer said:

After 12 years with Newmont, and almost 40 years in the mining industry, it is time for me to retire and hand over to Natascha to lead our Company through the next chapter in its storied history. It has been a privilege to serve as CEO of Newmont.

I thank our Board for its guidance and partnership throughout my time in the role, our Executive Leadership Team and all of our teams across the world for their support in shaping our business into the industry leader it is today. I am confident that Natascha and Newmont will seize the many opportunities that lie ahead for our business.

Who is Newmont's new leader?

Newmont advised that Ms. Viljoen first joined Newmont's executive leadership team in October 2023 as executive vice president and chief operating officer.

However, she has worked in the mining industry for more than 30 years, having served as CEO of the Anglo American (LSE: AAL) platinum business in South Africa from 2020 to 2022. She also held a series of operating and technical positions within the organisation, including as group head of processing.

In addition, Viljoen spent six years at Lonmin, where she was a member of the executive committee as executive vice president of processing, and also had responsibility for several wider corporate functions.

She appears up for the challenge of leading the world's largest gold miner. Ms. Viljoen said:

I am honored to serve as the next CEO of Newmont at this pivotal moment. With deep respect for our legacy, I am grounded about the work ahead. We have assembled the industry's strongest portfolio of long-life gold and copper assets, which we are determined to manage safely and effectively.

We will combine operational excellence, cost discipline and judicious capital allocation to ensure strong financial performance, systematically unlocking more value for shareholders and stakeholders alike. Together with our employees, we will shape a Newmont that is stronger, simpler and more resilient. I want to express my gratitude to Tom for his mentorship and support, and to the Board for entrusting me with the responsibility to lead Newmont into its next phase of growth.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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