Why the Resolute Mining (ASX:RSG) share price is edging higher today

The Resolute Mining Limited (ASX: RSG) share price is edging higher duing morning trade following a change in mangement. Here's the details.

| More on:
A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Resolute Mining Limited (ASX: RSG) share price is edging higher during morning trade following two leadership changes.

At the time of writing, the Resolute share price is swapping hands for 59.2 cents, up 1.2%.

New appointment

Investors have been buying Resolute shares following the announcement of a reshape in its management team.

According to this morning's release, Resolute advised it has appointed Mr Stuart Gale as its new managing director and CEO.

Since joining Resolute in January 2020, Mr Gale took up the role of chief financial officer, focusing on operational performance. However, from October that year, Mr Gale held the position of interim CEO following the departure of Mr John Welborn.

In Mr Gale's time as acting CEO, he has implemented and overseen a number of key initiatives. This includes a review of business operations, management appointments, and strengthening internal systems while managing the finance division.

Resolute chair, Martin Botha welcomed Mr Gale's permanent appointment, saying:

It gives me great pleasure to confirm Stuart's appointment as MD and CEO of Resolute. Over the past six months the Board retained a leading global search advisor who undertook a comprehensive CEO candidate search process. Throughout this period, Stuart has provided excellent leadership as Interim CEO, and clearly proven himself as the leading candidate for the role. Achieving this while retaining his CFO duties is also testament to his professionalism and capability.

Mr Gale will take over the company reins effective from today. A new search will be conducted to find a new chief financial officer that Mr Gale leaves behind.

What else did Resolute announce?

In further news boosting Resolute shares, the company also welcomed Mr Terry Holohan as its new chief operating officer (COO).

Mr Holohan brings a wealth of experience, holding various executive and technical positions in Africa for over 30 years. In addition, Mr Holohan spent the last 10 years in Asia working for PT Archi Indonesia. His role involved developing and expanding a multi-open pit gold mine, transitioning from an exploration project to an operational mine.

New Resolute managing director and CEO, Mr Gale commented:

It's great to have someone of Terry's calibre join Resolute. He brings a proven track-record together with detailed and wide-ranging technical knowledge and experience. Terry has demonstrated his experience and innovation through successfully developing and operating several particularly complicated mining and processing projects and we are looking forward to capitalising on this at Resolute.

The company's current COO, Mr David Kelly will oversee the smooth transition, and remain on the executive team.

Mr Holohan will assume the newly appointed COO role from 17 May 2021.

Resolute share price snapshot

Resolute shares have lost more than 40% of their value in the past 12 months. Year to date, the company's shares have not fared much better, down roughly 25% on the back of the falling gold spot price.

Based on the current share price, Resolute commands a market capitalisation of about $645 million, with 1.1 billion shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »