Lundin Mining Corp. chief executive Peter Rockandel is stepping down at the end of the year, and will be succeeded by Jack Lundin, the company’s president and the grandson of its founder.
After the company announced the leadership change, its shares fell by 5.3 per cent on the Toronto Stock Exchange to close at $9.21 each on Tuesday. Lundin Mining was the worst performer of the day on the 50-member TSX Materials Capped Index.
Mr. Rockandel, 57, a former long-time investment banker with GMP Capital Inc., will have been at the helm of the company for just over two years when he steps down.
Lundin Mining has recently made a series of other changes in its senior leadership ranks, particularly at the vice-president level.
Mr. Rockandel said in an interview that his departure was a “mutually agreed-upon decision” with the company’s board. He added that although he was willing to stay on, the Vancouver-based job has been difficult for him for personal reasons, because his family has remained in Ontario.
Mr. Rockandel said there had not been any clash between his strategic vision for the company and Mr. Lundin’s. He attributed the weakness in the company’s share price to human psychology.
“Whenever there is change … people always get a bit nervous,” he said.
Under Mr. Rockandel’s leadership, Lundin Mining bought a majority stake in the Caserones copper mine in Chile. He also oversaw the process of moving the company’s head office to Vancouver from Toronto, which took about nine months.
With Mr. Lundin taking on the CEO role, the company’s key officer positions will be held by siblings. Jack’s brother Adam is currently chairman.
When asked if the new leadership structure sets the company up for a potential family power struggle, Mr. Rockandel said those worries are unwarranted, because the brothers “are fairly aligned in how they approach business.”
He noted that Lundin Mining has added three independent directors under his watch, a move he said has introduced checks and balances to the company’s governance structure.
Earlier in his career, Jack Lundin worked at Lundin Gold Inc., where he oversaw the construction of the Fruta del Norte gold mine in Ecuador. He also served for three years as CEO of Bluestone Resources, a precious metals exploration and development company. In December, Mr. Lundin stepped down from Bluestone when he was named president of Lundin Mining.
Bluestone, Lundin Mining and Lundin Gold are part of a vast network of mining, renewable energy and oil and gas companies that fall under the Lundin Group of Companies, which was founded more than 50 years ago by Adolph Lundin, Jack and Adam’s grandfather. Lukas Lundin, son of Adolph, subsequently ran the group. He died last year from cancer at age 64.
The Lundin family is the largest shareholder in Lundin Mining, with a roughly 15-per-cent stake.
Lundin Mining produces copper, zinc, gold and nickel from operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States.
Mr. Rockandel became CEO of Lundin Mining in November, 2021. He succeeded Marie Inkster, who held the job for three years.
Niall McGee