Barrick Gold ousts CEO due to disappointing results

Wednesday, Feb. 12, 2003 | 10:48 a.m.

SUN STAFF AND WIRE REPORTS

TORONTO -- Barrick Gold Corp., one of the world's leading gold producers, fired chief executive Randall Oliphant today because of disappointing results and replaced him with Gregory Wilkins.

Barrick is the No. 2 gold mining company in Nevada behind Newmont Mining Corp.

Barrick's board made the change "to address its concerns over the company's recent performance and to restore Barrick to the leadership position in the gold industry it has consistently maintained throughout much its existence," said a company statement.

Wilkins, 47, is a former chief financial officer of Barrick and more recently the president and chief operating officer of TrizecHahn Corp. -- owner of the big Desert Passage mall at the Aladdin resort in Las Vegas.

"It is an exciting time in the gold industry and I intend to refocus the company on the core values which served it so well in the past," Wilkins said in the statement.

In December, Barrick cut its earnings expectations for the fourth quarter of 2002 and the full year, citing reduced production, higher costs and lower sales.

Oliphant said then the lower profit outlook was caused by "short-term problems at some of our operations that we're working to fix." He predicted fourth-quarter earnings would revive to between 10 cents and 11 cents per share, from 5 cents to 6 cents a share in the third quarter.

Barrick said in December that annual production was "on target" for 5.7 million ounces. Today's statement said fourth-quarter results were expected to meet the downgraded forecast.

The December forecast came a week after Barrick announced a $2 billion development plan, including gold production projects in Australia and South America, intended to double the company's earnings by 2006.

Barrick positioned itself as an industry leader in 2001 by acquiring Homestake Mining Co. of California in a $2.3 billion deal. The merged company is one of the world's top three producers, with assets in North America, Australia, South America and Tanzania in Africa.