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A day after the global mining powerhouse Anglo American plc (LSE:AAL) reported its production performance for the third quarter of 2012, the firm’s female CEO, Cynthia Carroll, declared she is stepping down from the post she held since 2007, a decision investors and market watchers cannot help thinking whether it is related with the recent decline in production in the labour unrest-stricken Rustenburg mining operations of the world’s top platinum producer.
But the statement the CEO issued in relation to the decision read, “I feel that the time will be right to hand over to a successor who can build further on the strong foundations we have created”, after saying that next year she is entering the seventh year at her post, whether she is merely following some biblical rule of resting on the seventh of every interval, one can only guess.
“It is a very difficult decision to leave,” she said, as she considered it a “great honour to lead Anglo American.”
“I am extremely proud of everything we have achieved during my period as Chief Executive and I will always retain enormous admiration and affection for this great company and its outstanding people.”
Performance Review
Under her watch, overall company performance swayed between ups and downs, after posting less than half of its 2008 profits in 2009, more than doubled in 2010, and slipped back nearly US$200 million for its 2011 financial year.
The decision came after its 80%-owned platinum unit, Anglo American Platinum (Amplats), reduced its guidance for platinum production and disclosed that about 138,000 ounces of platinum and platinum equivalents were lost during the strike at its South African mining operations.
That’s about at least US$200 million in lost revenue for the year, based on current pricing of the jewellery material. Carroll is the Chairman of Amplats Board as well as De Beers, which was recently 85%-owned following a further 40% acquisition worth US$5.1 billion.
The Very Best of Anglo American
A post from a follower of the stock at our ADVFN thread last Monday, 22nd October, indicated that while the Board of Anglo American was to meet this week to discuss the demands to replace the CEO and “growing shareholder concern over her leadership”, the company said that Carroll will remain from her post until one is appointed and proper transition has taken place.
While that can be considered a rumour, Sir John Parker, the group’s Chairman, paid tribute to the CEO for her efforts, saying “her values represent the very best of Anglo American.”
“Cynthia’s leadership has had a transformational impact on Anglo American. She developed a clear strategy, based on a highly attractive range of core commodities, and created a strong and unified culture and a streamlined organisation with a focus on operational performance,” Sir Parker stated.
“The Board is enormously grateful to Cynthia for her dedication, her hard work and all she has achieved,” Sir Parker, who will lead the search for her replacement, continued.
Good News, Bad News?
On the market, one can only speculate whether the today’s trading is affected by the news of her resignation. A poster on ADVFN earlier asked whether the announcement is bearish or bullish – the answer will always be, “it depends”.
The FTSE 100 constituent, nonetheless, gained 2% to £18.95 by 12:00 PM GMT. However, analysts and investors alike have criticized the firm’s market performance as they say it lagged behind its peers. Share price has reached to its record level last February 2011 at £34.37, after it added a further US$300 million in underlying earnings courtesy its De Beers holdings.
Whatever the case may be, Sir Parker said Carroll will leave behind a legacy in the areas of safety, sustainability, and quality of dialogue between stakeholders, which are all for the good of the London-based firm.
