Troy bosses take pay cuts as part of cost reduction strategy
PERTH (miningweekly.com) – Dual-listed gold miner Troy Resources on Thursday announced a range of initiatives to cut costs in response to price volatility.
“The falling gold price impacts the profitability of all gold companies, not just high cost producers,” said CEO Paul Benson, adding that it had to look for ways to reduce costs and better position the company for the future.
“In Troy’s case, assuming the acquisition of Azimuth is successful, we need to conserve cash to enable us to be in a position to move forward with the development of the West Omai project in a timely manner.”
Benson warned that the initiatives introduced on Thursday would impact on both employees and contractors.
The company announced cuts to director and senior management remunerations, with Benson’s base salary taking a 25% hit compared with 2013, while senior executive salaries would be reduced by 10%.
Director fees would also be reduced by 10%, and any short- or long-term bonuses or incentives would be paid out in equity, rather than cash.
Further, Troy announced that there would be staff reductions at its head office, as well as to its South American exploration teams and at both the Casposo and Andorinhas mine sites, while the exploration budget at Casposo has been decreased from A$15-million in 2013, to A$5-million in 2014.
Troy would also convert from a contractor to an owner-operated model at the Casposo underground mine, while the company would continue to review the cost base and operating strategies at both its mines, to ensure optimum operating performance.
“This is just one step on the journey, positioning our company to successfully operate and grow in a lower gold price environment. Although we are bullish on the gold price over the medium and longer term, we will position the company to operate in the current price environment and any rise in the price of gold will be a bonus,” said Benson.
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