The chief executive of troubled Scottish gold miner Scotgold Resources is quitting.
Scotgold’s share price fell nearly 3% following this morning’s announcement of Phil Day’s “intention to resign”.
But the stock bounced back and by market close the shares were each worth 14.5p, the same as today’s opening price.
Mr Day “remains in his post at this time”, the Alternative Investment Market-listed company said.
Scotgold, which operates Scotland’s only commercial gold mine at Cononish, near Tyndrum, in Argyll, added the process of recruiting a permanent successor would start immediately.
Mr Day has been Scotgold’s CEO since April 2021, mostly splitting his time between the gold mine site and a home in Switzerland.
The company said he now wished to spend more time with family in Australia and the board had “reluctantly accepted his resignation”.
‘Unwavering support’
Chairman Peter Hetherington added: “On behalf of Scotgold’s board of directors, I thank Phil for his dedication, unwavering support and very significant contribution to the company.
“Under his calm and steady leadership, since April 2021, Phil has guided the Cononish mine to safe and environmentally compliant commercial production, redesigned the mine schedule, implemented cut and fill stoping for faster access to higher grade zones, commenced long hole stope mining and ramped up the process plant for optimal continuous operation.”
A stope is a dugout tunnel or space containing the ore being mined.
Mr Day, 49, said, “I am very pleased with what we as a team have accomplished during my time as CEO. It has been a privilege to lead and develop the business. The company’s team and board are its greatest asset and I want to express my gratitude for their contribution.”
Scotgold has suffered a turbulent year. Bosses were forced to shore up its finances after production levels fell “below plan” in the first quarter.
In late March, shares in the firm slumped more than 65% after it highlighted the potential for a “material uncertainty” over its “very immediate” future.
Police called in
Scotgold said much of its recent output had “turned to waste”, rather than deliver valuable gold.
It also revealed it had called in the police after the email accounts of executive directors were accessed by “unauthorised persons” and “specious emails” sent in their names to numerous people.
Shareholders have pumped millions of pounds of fresh capital into the business this year.
And lender Bridge Barn, controlled by Scotgold non-executive director and former chairman Nathaniel le Roux has deferred capital and interest payments worth nearly £3m.
Significant challenges obviously remain for Scotgold.”
Peter Hetherington, chairman, Scotgold Resources.
Scotgold today updated the market on a string of operational measures aimed at getting its gold and silver mining at Cononish back on track.
Mr Hetherington said: “Significant challenges obviously remain for Scotgold.
“We as a board have a duty of care to all team members and respect Phil’s request for the time and space, away from CEO PLC duties, with his family in Australia.
“We remain committed to all stakeholders and the ongoing development and production from Cononish, Scotland’s first commercial gold mine and will update the market in due course on the new CEO appointment.”
The “first pour” of commercially produced gold from the mine was achieved on November 30 2020.
Scotgold, whose mining activities in Argyll featured in popular BBC TV series Gold Town, has previously said Cononish is only the beginning of its Scottish gold ambitions.
The company holds 13 lease option agreements covering an area of nearly 1,120 square miles of the central Highlands, mostly in rural Perthshire.
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