Shareholders press Newcrest Mining to appoint external chief executive

Gold miner Newcrest announced in December that Sandeep Biswas was departing the company in what was considered an abrupt move. Picture: Bloomberg

Newcrest Mining is coming under pressure from investors to appoint an external candidate to replace its outgoing chief executive as speculation mounts that the interim boss is in line to formally be given the top job.

The $20bn gold miner announced in December that Sandeep Biswas was departing the company in what was considered an abrupt move.

While a search for a new leader was underway, chief financial officer Sherry Duhe was appointed interim CEO.

Ms Duhe joined Newcrest from Woodside last year where she was CFO, and she had been a finance manager at Shell before that. Sources suggest Ms Duhe will be offered the permanent CEO position.

But some of shareholders are understood to have written and spoken to the company’s board, led by Peter Tomsett, urging it to hire a chief executive externally with operational experience. They consider Ms Duhe as an executive with more of a finance background.

Sources claim only one of the top 10 shareholders were in favour of Ms Duhe’s appointment, with the expectation she will sell the Havieron joint venture in WA with Greatland Gold. But some are of the belief the operation will be sold regardless of who is appointed CEO.

Other management have left, including Australasian chief operating officer Phil Stephenson, who left Newcrest at the end of last year, with Americas COO Craig Jones to assume control of all operations on an interim basis.

Mr Biswas faced complaints about his management style, but was credited with rescuing Newcrest from the parlous situation the company faced when he joined in 2014. The gold major was still reeling from the combined impact of falling gold prices and its ill-fated $10.5bn scrip acquisition of Lihir Gold in 2010.

The company suffered a first strike over its remuneration report in November, with more than 36 per cent of shares voted against its pay structure after proxy advisers raised concerns about the generous bonus for the CEO. This is despite falling cashflow and as its share price slumped in September in line with other gold stocks before staging a recovery.

Newcrest’s largest shareholder is BlackRock with a 10.79 per cent holding, according to Bloomberg data.

Other major shareholders are Australian fund manager Allan Gray with 7.36 per cent, State Street with 6.11 per cent, Van Eck with 4.85 per cent and Vanguard Group with 4.39 per cent.

Newcrest shares closed up 82c on Thursday to $23.11.