Nickel role for Cahill
After watching zinc lead miner Perilya’s share price more than quadruple during his four-year tenure as director of operations, Barry Cahill has signed on to take the wheel at emerging nickel miner Australian Mines Limited.
Mr Cahill takes over the position at Australian Mines from former managing director Don Boyer, who announced his resignation from the board late last month to pursue other mining and private interests.
Commencing at Perilya in 1998, Mr Cahill oversaw the wind down of its successful gold mining operation at Fortnum, WA and the acquisition of the legendary Broken Hill lead, zinc and silver mine in New South Wales.
In that time the 17-year-old company’s share price ramped up from 21 cents to reach a high of $1.44 earlier this year, before falling back to well below $1.
Citing “nothing untoward” and “time for a change” as the reason for resigning, Mr Cahill said after four years he was intent on having a break.
However, the opportunity at Australian Mines was too good to turn down for Mr Cahill, whose $250,000 remuneration package includes a position on the miner’s board and an allocation of options still subject to shareholder approval.
Mr Cahill said Australian Mines was a small company with good management, an operating mine, no debt and a significant opportunity for growth.
Australian Mines, following the acquisition of the Blair nickel mine between Kalgoorlie and Kambalda in March 2003, watched its share price track to a high of 25 cents earlier this year.
First ore from stage one of Blair was produced in March, however more recent operational problems at the former WMC mine led to Australian Mines’ share price dropping to 12 cents. Earlier this week the shares were at 14.5 cents.
With the problems seemingly behind it, Mr Cahill says Australian Mines is on target to commence producing from stage two at Blair next month.
Yet despite plans to grow Australian Mines into a mid-cap resource company, Mr Cahill would not talk about anything beyond that.
Production is scheduled to cease at Blair mid-way through next year, however, Mr Cahill would only say as part of the company’s growth strategy any opportunities in acquisitions, partnerships or exploration would not be ignored.
Aside from Blair, Australian Mines also holds exploration tenements in the West Musgrave region.
Mr Cahill said Australian Mines’ focus remained squarely on its 105 square kilometre package of tenements in the Kambalda region.
