GOLD POUR at Goldcorp's Red Lake operations in Canada Photo: Goldcorp

GOLD POUR at Goldcorp's Red Lake operations in Canada
Photo: Goldcorp

 
 

Garofalo Joins Goldcorp as CEO

Issue 148, December 2015

David Garofalo, chief executive of HudBay Minerals, has taken the top job at gold giant Goldcorp, replacing Chuck Jeannes, who will retire after the company's AGM in April, the two companies announced on Friday.

Jeannes, a passionate fly fisherman, said he wants to remain in the mining industry, but after 17 years at Goldcorp and its predecessor, Glamis Gold, is stepping back from the pace of being a CEO. “It’s time to let someone else take the reins,” Jeannes told The Globe & Mail. “Change is good for an organization.”

Garofalo, who was finance director at Agnico Eagle before joining HudBay in 2010, has deployed a distinctive strategy at both companies, taking equity stakes in smaller companies and feeding future mines into the project portfolio. He has maintained that trying to time the market is futile, instead building long-life operations throughout the cycle.

Agnico built five new gold mines in quick succession during Garofalo's time at the company, whilst HudBay has built three mines in the last 5 years, including its Constancia copper mine in Peru, lifting production more than fourfold in the last 12 months.

Goldcorp's Growth

Under Chuck Jeannes, Goldcorp has pursued an equally ambitious build programme, lifting production from 2.3m ounces in 2008, when Jeannes became CEO, to around 3.5m ounces this year. In 2012, it overtook troubled miner Barrick as the world's largest gold mining company by market cap.

Goldcorp has faced teething problems at some of its new operations, including its Eleonore mine in Quebec, whilst its Cerro Negro mine in Argentina has struggled to live up to its hype, following a $3.4bn acquisition in 2010. But whilst Barrick remains focused on asset sales and paying down debt, Goldcorp's appointment of David Garofalo appears to redouble its commitment to growth.

Garofalo told Global Mining Observer that he was “honored to be entrusted with the leadership of the largest gold company in the world”, saying it was “unequivocally that of the highest quality.” He also paid tribute to the “tremendous legacy” of Chuck Jeannes and said he looked forward to working with Goldcorp's chairman, Ian Telfer.

HudBay's chief operating officer, Alan Hair, will replace Garofalo as HudBay's CEO in January. He has been with the company since 1996.

“I’m honored to be entrusted with the leadership of the largest gold company in the world.”

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