Superior Gold Sees CEO Resign, Strategic Review Process Commenced

Superior Gold Inc (TSXV: SGI) announced this morning that it is in the process of conducting a strategic review process to explore potential alternatives for the firm to “maximize shareholder value.” Such actions could include a sale or merger of the firm, a joint venture, or new financing alternatives. In connection with the review process, the CEO and founder of the firm, Christopher Bradbrook has resigned from his role as a CEO and Director of the firm effective at the close of business today.

In Bradbrook’s place on an interim basis will be that of Tamara Brown, an independent director of the firm. Brown has prior experience in conducting corporate development as well as strategic reviews.

The announcement this morning came with the news of production results for the second quarter of 2020, with the company producing a total of 15,177 ounces of gold over the three month period, while selling 15,536 ounces. The results declined slightly on a quarter over quarter basis in light of the coronavirus pandemic, comparing to 16,351 ounces produced and 16,850 ounces sold in the first quarter of the year.

The firm also revised guidance however, with anticipated gold production falling by roughly 25%, from 80,000 to 90,000 ounces expected to that of 60,000 to 70,000. Cash cost estimates meanwhile climbed dramatically, from $975 – $1,075 to that of $1,250 – $1,350, significantly impacted the economics of the project. All in Sustaining Cost estimates also rose dramatically, from $1,075 – $1,175 to $1,350 – $1,450, which is believed to be the basis for the strategic review.

The firms special committee will determine within its strategic review whether to find a permanent replacement for the CEO role or to pursue a potential transaction.

Superior Gold last traded at $1.47 on the TSX Venture.

Information for this analysis was found via Sedar and Superior Gold Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

One thought on “Superior Gold Sees CEO Resign, Strategic Review Process Commenced

  • August 15, 2020 4:30 PM at 4:30 pm

    Why did Chris Bradbrook leave so hastily, he started this company and then just quickly leaves?


Leave a Reply