- Endeavour Mining’s board of directors announced it has fired President and CEO Sébastien de Montessus “for serious misconduct”
- The company’s news release stated the misconduct was related to an irregular payment instruction of US$5.9 million issued by de Montessus
- Ian Cockerill, Endeavour’s deputy chairman of the board has been appointed chief executive officer and executive director
- Shares of Endeavour Mining fell by 10.07 per cent Thursday, closing at C$25.98
Endeavour Mining’s (TSX:EDV; LSE:EDV; OTCQX:EDVMF) board of directors on Thursday announced it has fired President and CEO Sébastien de Montessus “for serious misconduct with immediate effect” related to an irregular payment instruction of US$5.9 million.
De Montessus’ termination occurred after the board investigated an an irregular payment instruction, which Endeavour’s news release stated as US$5.9 million issued by him, in relation to an asset disposal undertaken by the company.
According to the release, the board recently became aware of the irregular payment in the course of a review of acquisitions and disposals, which is ongoing.
De Montessus, who had been Endeavour Mining’s CEO since 2016, was also removed from the company’s board of directors. It’s a stunning fall from grace for the Market Trading Essentials 2020 Mining Person of the Year.
“Separately, in October 2023 allegations were made against Sébastien de Montessus through the Company’s confidential whistleblowing channel relating to his personal conduct with colleagues. Following a recent external investigation, the board had received the findings and, at the point of termination, was considering the appropriate course of action,” Endeavour Mining’s release stated.
De Montessus has denied any wrongdoing. In a statement released Thursday, according to The Guardian, De Montessus said: “In 2021, I instructed a creditor of Endeavour plc to offset an amount owed to the company to pay for essential security equipment to protect our partners and employees in a conflict zone. The decision had no additional cost to the company and did not benefit me personally in any way. I omitted to inform the board that I had arranged for this offset, which I have freely accepted was a lapse in judgment.
“This week I was given 48 hours’ notice of the concerns and no proper opportunity to answer them. As to the other investigation: no misconduct of any kind was discovered because none occurred. I am proud of what we have built together at Endeavour over the past eight years. I will take my time to consider my position with my advisers.”
Ian Cockerill, Endeavour’s deputy chairman of the board has been appointed chief executive officer and executive director. Cockerill has held senior roles covering operational, project and executive positions around the world, having held executive roles at major international mining companies, including CEO of Gold Fields and Anglo Coal, a subsidiary of Anglo American, as well as non-executive positions.
Endeavour Mining is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.
Shares of Endeavour Mining fell by 10.07 per cent Thursday, closing at C$25.98. Endeavour Mining stock is down 29.97 per cent from its 52-week high of C$37.10.
This story has been updated to add de Montessus’ response to the allegations.
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