It might be the most dangerous job in mining.
In just 22 months, the title of chief executive officer of HudBay Minerals Inc. has changed hands three times. Now it's changing again.
In a surprise announcement yesterday, the Toronto-based company said Peter R. Jones is stepping down as CEO and will retire at the end of the year. HudBay, which mines zinc and copper near Flin Flon, Man., said it hasn't found a permanent replacement. Michael Winship, its president and chief operating officer resigned, effective immediately.
HudBay shares skidded nearly 5 per cent as nervous investors reacted to the news.
The shakeup heralds yet another tumultuous episode in the recent history of one of Canada's largest base-metals miners. Cash-rich, with more than $800-million on its balance sheet, HudBay has been perennially starved for production growth. Attempts to bulk up through acquisitions have been largely unsuccessful.
Mr. Jones' departure comes less than eight months after he reclaimed the HudBay CEO job following a bitter proxy battle. It also marks the second time he has left the position. He will remain a board member.
A source close to the company said HudBay's board initiated the changes. A highly skilled mining operator, Mr. Jones was described by sources as a "micro manager" who had yet to prove himself as a CEO adept at major mergers and acquisitions.
"HudBay is a new company taking a new way forward and it's time for succession planning," the source said.
Mr. Jones' second departure from HudBay's CEO job comes amid a massive rally in the company's shares thanks to bright prospects for its Lalor Lake gold and zinc-development project in Manitoba.
After nosediving in 2008, shares have surged 439 per cent this year on impressive drill results from Lalor and rebounding base-metal prices.
Mr. Jones was HudBay's CEO from 2004 until early 2008 when he was ousted in a boardroom skirmish that saw chairman Allen Palmiere take over the top executive role.
Mr. Palmiere didn't last long. He resigned in March amid deafening criticism of an ill-fated attempt to merge with rival Lundin Mining Corp. during the global financial crisis last fall. Mr. Palmiere's replacement, industry veteran Colin Benner, survived a couple of weeks. Mr. Benner resigned just before Mr. Jones returned to the CEO job following a successful proxy contest led by Monaco-based SRM Global Master Fund Ltd., a major HudBay shareholder.
Yesterday, HudBay named Warren Holmes as executive vice-chairman and said the former Noranda and Falconbridge executive will take over as interim CEO until a replacement for Mr. Jones is found.
In an interview, chief financial officer David Bryson said HudBay remains committed to developing the Lalor project and its overall strategic plan.
HudBay Minerals (HBM)
Close: $15.74, down 76 cents