Chief Financial Officer Paul Martin will serve as interim CEO while Detour Gold searches for Panneton’s replacement, the Toronto-based company said in a statement today. The shares fell 11 percent to C$3.80 at 9:35 a.m. in Toronto.
Detour Gold, whose biggest investor is hedge fund firm Paulson & Co., has dropped 85 percent this year amid a decline in metal prices and after the company cuts its production forecast in May. Panneton began as CEO in 2006 and led the company’s development of Detour Lake in northeastern Ontario, which poured its first gold bars in February and started commercial output Sept. 1.
During 30 days of commercial production in September, Detour Gold’s cash costs were $1,214 an ounce, it said Nov. 7. Gold for immediate delivery in London fell 0.3 percent to $1,240.29 at 2:37 p.m. in London.
Detour Gold also said Nov. 7 that operating costs will decrease as it improves efficiency and raises the mine’s ore-processing rate to the design capacity of 55,000 tons a day.
Paulson holds an 11 percent stake in the company, according to data compiled by Bloomberg.
To contact the editor responsible for this story: Simon Casey at email@example.com