Beadell Resources chief executive and managing director Simon Jackson, along with two directors, has stepped down from his position as the Brazil-focused company tries to improve its operating performance.
The company today announced that Jackson has been replaced by Nicole Adshead-Bell, who has been a non-executive director with Beadell since September 2016.
Meanwhile, Beadell has executed a life-of-mine (LOM) contract at its Tucano gold mine that is expected to reduce operating costs by $US100 million ($135 million).
The contract with U&M Mineração e Construção, Brazil’s largest contractor, has been secured a month after Beadell ended a mining services agreement with MACA at the open pit operation.
Beadell’s new contract will be paid on a 100 per cent volume basis to provide mining unitary cost predictability, a simplified contract, mining management and administration.
According to Beadell, the arrangement is expected to result in an additional $US1 million annual cost savings when compared to the previous contract.
Adshead-Bell acknowledged that Beadell had underperformed in terms of cost and production guidance.
“In the opinion of the board and management, the key contributing factor to this underperformance has been an inability to mine waste and ore tonnes at the forecast rates assumed in the mining contract executed by the predecessor management team (prior to Simon Jackson’s appointment) in November 2014,” Adshead-Bell said.
“The ripple effect of a continual shortfall in material movement resulted in lower mined ore tonnages available to the plant. This was supplemented by low grade stockpiles and spent ore, resulting in a head grade that was materially lower than reserve grade, thereby negatively impacting production and revenue.”
Beadell produced 26,386oz of gold at Tucano in the March quarter.