Shares of New Gold Inc. (TSX:NGD)(NYSE American:NGD) are caroming off a multi-year low Wednesday following the company shoring up its executive team. The Toronto-based intermediate gold mining company said this morning that Renaud Adams has been appointed as the new President and Chief Executive Officer, replacing Raymond Threlkeld.
Threlkeld, a board member at NGD, took the helm as chief executive and President at New Gold in May subsequent to the resignation of Hannes Portmann. With the appointment of Adams, Threlkeld has not only stepped away from its executive positions, but also has given up his director seat at New Gold. Adams will take Threlkeld's seat in the board room too.
Adams is a seasoned vet of the mining industry with over 25 years of experience. He was most recently the President and CEO at Richmont Mines, which was acquired by Alamos Gold (TSX:AGI)(NYSE:AGI) last November in a $905-million deal.
While at Richmont, production at the Island Gold mine in Ontario, Richmont's primary asset, more than doubled, mineral reserves more than tripled and costs were reduced to make the mine one of the lowest-cost operating underground mines in the Americas.
Prior to that, Adams was COO at Primero Mining Corp. He also served as the General Manager of the Rosebel mine in Suriname and then SVP, Americas Operations at IAMGOLD Corp. (TSX:IMG)(NYSE:IMG), as well as other senior level positions at mining operations throughout North, Central and South America.
Adams also currently serves on the board of GT Gold Corp. (TSX-V:GTT).
"l look forward to the significant opportunities we have as we continue to improve operational performance at Rainy River, increase cash flow at all operations, and create value for our shareholders through a disciplined approach to both productivity and value creation from our portfolio of long-life assets," said Adams in today's news on the hiring.
Shares of Toronto-listed NGD had been slowly skidding across 2018, a decline that accelerated in July to take the stock as low as $1.00 yesterday, marking the lowest level for the stock since the Great Recession a decade ago.
Shares have bounced with Adams' appointment, rising 28.2% to $1.32 in early Wednesday afternoon trading. In the U.S., shares are moving similarly, gaining 27.3% to $1.00.
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