Australian uranium development company Deep Yellow has moved to quell investor unrest by appointing a former Rio Tinto managing director as its new chief executive, following the abrupt departure of industry veteran John Borshoff.
Rio Tinto Veteran Steps Into Leadership Role
Greg Field is set to commence as Deep Yellow's Chief Executive and Managing Director by May 1, 2025, effectively closing the door on the potential return of former leader Mr Borshoff. The appointment comes after significant pressure was applied to the company's board by major shareholders, including Paradice Investment Management, Soul Patts and MacMillan Super Fund.
Mr Field, whose most recent role was Rio Tinto's managing director for projects in America and Europe, will receive an annual salary of $728,000, inclusive of superannuation contributions. He is also eligible for short and long-term bonuses that could each represent up to 80 per cent of his base salary.
Investor Frustration Boils Over at AGM
The leadership change follows a period of significant turbulence for Deep Yellow. Shareholders used the company's packed annual general meeting in Perth on November 20 to voice their frustration over Mr Borshoff's exit. The news of his departure, which broke on October 20, had wiped nearly 20 per cent from Deep Yellow's market value.
Since then, the company has been run on an interim basis by Chief Financial Officer Craig Barnes, with Executive Chair Chris Salisbury – himself a former Rio Tinto iron ore chief – taking on a more hands-on role.
Strategy Unchanged Amid Uranium Market Watch
Executive Chair Chris Salisbury welcomed the appointment, stating Mr Field would bring considerable execution skills and extensive experience in delivering large-scale resource projects to the role. Mr Salisbury emphasised that the company's core strategy remains unchanged.
"We will continue the orderly derisking of the Tumas Project whilst also watching the uranium market develop the conditions necessary to support greenfield development," Mr Salisbury said.
Mr Field expressed his alignment with the company's direction, highlighting its two key assets. "I am fully aligned with the company's strategy, and with two execution ready projects in Tumas and Mulga Rock, the company is well-positioned to capture the upside potential of the market and deliver long-term value to shareholders," he stated.
A final investment decision on the flagship Tumas project in Namibia was deferred in April this year. Meanwhile, the Mulga Rock project in Western Australia's Goldfields remains the state's only uranium venture with full State Ministerial approval.
Deep Yellow shares were trading at $1.62 in early trade, up 0.43 per cent on the news of the executive appointment.
