Nexus to restructure board in wake of falling gold

Nexus Minerals has become the latest in a long line of gold players to announce cost cutting initiatives as uncertainty prevails in the gold market.

The Perth-based, Tanzania-focused miner said today it would restructure its board and install a new executive team as part of its efforts to conserve cash.

Managing director Jason Greive will revert to a non-executive director’s position, while non-executive director Tim Fairhead will resign at the end of June.

“Market conditions have changed and the company must adapt accordingly, the board of Nexus believes it is now critical to strategically position the company to take advantage of the increasing flow of advanced projects emerging in the marketplace,” Mr Greive said in a statement.

Nexus said it had made significant progress at its Kalenge gold project in Tanzania, but was wary of making significant spending commitments in prevailing market conditions.

The miner said the key outcome of its strategic review was to conserve its $8.1 million in cash, unless a suitable project acquisition opportunity arises in the medium-term.

Nexus chairman Paul Boyatzis said the company had responded effectively to challenging market conditions.

At close of trade today, Nexus shares were steady at 6 cents.