Endeavour Mining EDV announced the abrupt termination of CEO Sébastien de Montessus, citing "serious misconduct" and irregularities linked to the sale of a company asset.
Following the news, shares dropped by 14% before erasing some losses during the Friday session.
Endeavour is a constituent of the FTSE 100 Index while also listed on the Toronto Stock Exchange.
According to a statement, the London-based company took decisive action after uncovering an alleged “irregular payment instruction” amounting to $5.9 million related to an asset sale.
Additionally, an external investigation into de Montessus’s conduct with colleagues, prompted by allegations from October, led to his dismissal.
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Per the Financial Times, De Montessus expressed dissatisfaction with the swift termination, citing how he was given only a 48-hour notice and no proper opportunity to address the raised concerns.
He acknowledged instructing an unnamed creditor in 2021 to offset a debt owed to Endeavour for essential security equipment to protect its partners and employees in an unspecified conflict zone.
Despite claiming that the decision had no additional cost to the company and did not personally benefit him, de Montessus admitted failing to inform the board of this arrangement, labeling it a “lapse in judgment.”
Endeavour appointed Ian Cockerill, the Deputy Chairman, as the new CEO, effective immediately. Cockerill has over four decades of experience in the global resources industry. Previously, he served as CEO of Gold Fields Ltd GFI. And Anglo Coal, a subsidiary of Anglo American plc.
During his seven-year tenure as a CEO, de Montessus executed transformative strategies through deals and mine-building, replacing small and high-cost operations with flagship projects.
He was active with acquisitions, buying Teranga Gold Corp and Semafo Inc, but also backed away from acquiring Centamin Plc CEE and Acacia Mining Plc, which eventually was sold to Barrick Gold Corp. GOLD. Yet, share prices have been volatile over those seven years, marking an unremarkable 30% growth.
In 2023, the stock lost 13%, with the largest shareholder, Egyptian billionaire Naguib Sawiris, selling over 3.7 million shares. Over the last five years, he reduced his stake from 30% to 18%.
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