Kevin McArthur has been named CEO of Tahoe Resources.LAURA LEYSHON/The Globe and Mail
A familiar face on Bay Street is back in the chief executive's office at Tahoe Resources Inc.
On Wednesday, the junior precious-metals miner announced that Kevin McArthur is reassuming the role of chief executive officer following the departure of Alex Black. The timing is a surprise, considering that Mr. Black was named CEO only this year, an appointment that dovetailed with Mr. McArthur's being named executive chairman.
Mr. McArthur is well known in the investment-banking world because he ran some of the country's biggest gold companies during the mining boom: Glamis Gold Ltd. and Goldcorp. He also has a rich history with Tahoe, which includes serving as CEO and taking the company public in 2010.
Mr. Black joined Tahoe through a merger with Rio Alto Mining Ltd., which he ran, in April. The share-for-share combination was designed to add bulk to both companies, providing the combined miner two operating mines – one gold, one silver – two development projects and a balance sheet with no debt. As CEO, Mr. Black was tasked with integrating Rio Alto's Peru operations into the combined company.
Two months later, Goldcorp sold its entire 26 per cent stake in Tahoe for $17.20 per share as the much bigger gold miner sought ways to shore up its balance sheet, something most major producers are doing. The $1-billion deal was slow to sell, so it got repriced to $16.80 per share. The company's stock now trades for $10.32.
Officially, Mr. Black is resigning for "personal reasons," but Tahoe has been trying to streamline its operations because metals prices remain subdued, and that includes removing any redundancies on the executive team.
Tim Kiladze