West Perth-based Consolidated Minerals Ltd has announced the appointment of former BHP Minerals chief executive Dick Carter as its new chairman, and a $3.4 million payout to its departing managing director Michael Kiernan.
West Perth-based Consolidated Minerals Ltd has announced the appointment of former BHP Minerals chief executive Dick Carter as its new chairman, and a $3.4 million payout to its departing managing director Michael Kiernan.
Also joining the ConsMin board as a non-executive director will be Mike Etheridge, who was Technical Director of SRK Consulting following its merger with the consulting firm he co-founded - Etheridge, Henley and Williams.
The payout to Mr Kiernan will reduce the company's profit below its recent guidance figure of approximately $20 million, as this amount did not include "abnormal non-trading items".
It also follows the Kiernan family gaining $2.66 million from the sale of shares in ConsMin at the beginning of June.
ConsMin's new chief executive will be Rod Baxter, who has held the interim postion of executive director since February. He previously worked for the Anglo American group in South Africa, and told WA Business News earlier this month that he wanted to increase the company's involvement in nickel, copper and zinc mining.
Non-executive finance director David Macoboy will also retire from the board, to be replaced by Bruce Brook, while current executive director Allan Quadrio will step down from his executive responsibilities, but will remain on the board as a non-executive director until December 31.
Consolidated also announced today the closure of its $70 million convertible notes issue with a part of the funds to be funneled into the company's developments in nickel mining at Kambalda. The company has also secured in principle approval for listing of the convertible notes on the Singapore Stock Exchange, with JPMorgan the lead manager for the offering.
The full release issued by the company is pasted below.
Consolidated Minerals Ltd (ASX: CSM, AIM: CNM, FSE: CMN) has today announced key board changes following the retirement of Managing Director Michael Kiernan, establishing an accomplished new leadership team to steer the Company's growth into the future. The board changes are effective from 1 July 2006.
The former Chief Executive Officer of BHP Minerals, experienced senior mining executive Richard (Dick) Carter has been appointed as Consolidated's new non-executive Chairman, replacing Colin Smith who has retired from the Board. Carter - whose executive career spanned 37 years with the BHP Group - was appointed as a non-executive Director of Consolidated last December, and has already made a strong contribution - bringing a range of skills and experience including strong board leadership, corporate governance and strategy formulation, as well as a wide-ranging network of international contacts.
Michael Kiernan steps down from the Board today, formally handing over the Managing Director's role to Rod Baxter, who has held the interim position of Executive Director since February to facilitate a smooth management handover. Mr Kiernan will continue to make available his extensive knowledge of the Company, its customers and shareholders, as a consultant to the Company.
Baxter joined Consolidated in February 2005, having been recruited initially to the role of General Manager Group Services following a distinguished career with the Anglo American group in South Africa, including the dual role of Projects Director for Anglo American plc and Divisional Director with Anglo American Platinum Corporation Ltd.
Consolidated also announced the appointment of Dr Mike Etheridge, one of Australia's foremost experts in minerals geology and exploration strategy, as a non-executive director. Dr Etheridge - who has over 30 years experience as an industry consultant, academic and research scientist - was previously Principal and Co-founder of Australia's preeminent geoscience consulting firm, Etheridge, Henley & Williams (EHW), and later Technical Director of SRK Consulting following its merger with EHW. He currently holds a range of academic, consulting and non-executive board positions including as non-executive Director of Ballarat Goldfields NL.
Long-serving non-executive Finance Director David Macoboy also retires from the Board, while Executive Director Allan Quadrio will step down from his executive responsibilities but will remain on the Board as a non-executive Director until 31 December 2006. Macoboy's responsibilities as Finance Director will be assumed by non-executive Director Bruce Brook, who joined the Board last November. Brook is a highly credentialed senior finance executive in the international mining industry who was previously Chief Financial Officer of WMC Resources.
In recognition of his contribution to the Company over the years since its inception and the absence of a long term incentive provision in his employment conditions, Kiernan will receive a lump sum retirement payment of $3.4 million, the after tax component of which will be used to repay a shareholder approved company loan. As an abnormal nontrading item, the retirement payment has not been included in the Company's after tax trading profit guidance for 2005/06 of approximately $20 million, which also excludes other non-trading items such as AIFRS adjustments, writedowns of investments / project expenditures and equity accounted losses.
Paying tribute to the retiring directors and welcoming Dr Etheridge to the Board, incoming Chairman Dick Carter said: "Under Michael Kiernan's and Colin Smith's leadership, Consolidated has grown from a problematical beginning to become a successful and diversified S&P ASX 200 Australian mining company in a relatively short period of time. Michael's most important legacy is that he has guided the installation of a new management team, headed by Rod Baxter, with the skills, experience, vision and commitment to ensure that we make the most of the hard work of the past 8 years and take the Company to the next level of growth".
"As one of the only truly diversified mid-tier Australian mining companies, Consolidated has a strong outlook for the future, leveraged to the continuing growth of the Chinese and Indian economies, balance sheet strength, and the ability to take advantage of new opportunities," Carter said. "We have a profitable, long-life manganese business, a nickel business that will drive future earnings growth, as well as substantial new copper, zinc and iron ore projects either already under development or at feasibility stage which will underpin growth into the future," he added. "I am confident that the new management team, under the stewardship of Rod Baxter, will do an excellent job in continuing to realise our vision over the next decade."
