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July 17, 2014 --- Vol. 08, No. 29July 2014

Barrick picks two presidents to replace one president and CEO

The Barrick Gold Board of Directors has named two “co-presidents” and no new CEO to fill the void being left by Jamie Sokalsky, who, after two years on the job, will be relinquishing the role of president and CEO, effective Sept. 15.

The Barrick Board said this new dual-president executive management structure is meant to enable the company to meet the demands and challenges of the mining industry in the 21st Century.

Kelvin Dushnisky, currently senior executive vice president responsible for corporate and government affairs and chairman of African Barrick Gold, and Jim Gowans, currently executive vice president and chief operating officer, are to rise to the positions of Barrick presidents.

As co-presidents, Dushnisky and Gowans will be responsible for the seamless execution of Barrick’s strategic priorities and operating plans, while maintaining the company’s relationships with host governments, local communities and other external stakeholders.

Barrick said this model reflects the interconnected nature, and strategic importance of jointly managing day-to-day mining operations, while fostering relationships with stakeholders.

“These structural changes put an even greater emphasis on operational excellence, and will accelerate our portfolio optimization and cost reduction initiatives, while fostering a partnership culture both inside the company and externally,” Barrick Chairman John Thornton explained during the July 15 roll-out of the new structure. “Internally, that means our people will be financially invested for the long-term in Barrick’s success, and personally committed to a culture of teamwork that balances individual and collective responsibility and accountability. Externally, it means building enduring partnerships with the key stakeholders who are central to our success, including long-term investors, host governments, local communities and NGOs.”

Some analysts have opined that the new structure of two presidents and no apparent CEO transfers more authority to the Barrick chairman.

“The perception of investors was that there were internal management conflicts between the board and the executive team,” Josh Wolfson, a gold analyst at Dundee Securities, told Reuters. “Now there is no question on who is in control.”

The Barrick Board said Ammar Al-Joundi, who is being promoted to senior executive vice president and chief financial officer, will work closely with the chairman on the development and execution of strategic initiatives.

Darian Rich will become executive vice president, talent management, a new position that reflects Barrick’s need to attract, retain and develop exceptional people.

Over the next three months, Sokalsky will help Barrick transition to the new leadership structure.

During his tenure as president and CEO, Sokalsky championed a strategy to prioritize returns and free cash flow over production growth and led a company-wide portfolio optimization program. He also spearheaded initiatives to reduce costs and strengthen the company’s balance sheet.

“I’m fortunate to have worked with so many great people over my career at Barrick, and I’m particularly proud of what we have been able to accomplish over the past two years with the support and dedication of the entire Barrick team,” said Sokalsky. “It is now time for the next phase of the company’s development. I believe our new management structure will allow Barrick to address successfully the key challenges facing the mining industry today, and in turn, will position the company to deliver superior returns to its shareholders in the future.”


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