Iamgold in search of new CEO as Stothart leaves

The Toronto-based gold miner, which gave no reason for Stothart’s departure, said chief financial officer Daniella Dimitrov would serve as chief executive on an interim basis.

Dimitrov, who joined Iamgold in March last year, was also appointed president.

Stothart joined the company in 2007 as COO and became president and CEO in March 2020.

Chair Don Charter thanked Stothart for his time at the helm and credited him for “championing” the Côté Gold project in Ontario.

In a separate release, Iamgold announced the Canadian project — a 70/30 joint venture with Sumitomo Metal Mining — is 43.4% complete and on track to begin production in the second half of 2023, with an expected average production of 316,000 ounces of gold a year.

Earlier this month, Canada’s Nutrien (TSX, NYSE: NTR), the world’s largest potash producer, surprised the market by announcing its chief executive officer Mayo Schmidt had left the company and resigned from the board.

Frequent leadership changes in a company can sometimes be a sign of instability or poor management, analysts say. Unexplained C-suite departures are even more concerning to investors, because of potential liabilities or scandals that could affect the stock price and the direction of the company.

Shares in Iamgold dropped on the news in both the Toronto and New YorK stock exchanges. They were trading 5.11% down on the TSX to C$3.53 and 5.08% lower in NY to $2.80 a piece by mid-day. The miner’s market capitalization sits at C$1.77 billion ($1.41bn).