Goldcorp CEO Out to Transform Mining Company
Goldcorp must do much more than produce the metal to compete with ETFs for investor attention, says CEO Charles Jeannes.
By Julie Segal
Goldcorp CEO Charles Jeannes
Mining is in Charles Jeanness blood. He grew up in Nevada, a state that is the largest producer of gold in the U.S. and would rank third or fourth in the world were it an independent country. His father was part of a small group of investors who bought and revived an abandoned gold and silver mine in Nevada. Though the venture failed after prices fell, the investment sparked an interest in mining on the part of the younger Jeannes. But he also wanted to be a lawyer. After getting a BS in business and political science from the University of Nevada, he earned a law degree from the University of Arizona, which had a mining and environmental law program, in 1983 and practiced law until 1994 as head of the natural-resources section at Woodburn and Wedge in Reno.
Jeannes eventually took a job with his biggest client, Placer Dome, a Canadian gold mining company, then moved to Glamis Gold, a Reno-based gold miner, where he was executive vice president, general counsel and secretary until Glamis merged with Goldcorp in November 2006. He became Goldcorps CEO in December 2008.
His company has had a tough year, dealing with water shortages in Mexico, where it operates three mines, and coping with seismic activity that has reduced production at its Red Lake mine in Ontario, Canada. In early July, Goldcorp, the second-largest gold mining company after Barrick Gold Corp., warned that those problems would cause its gold output to decline this year. Earnings fell 45 percent in the second quarter of 2012 from the same period a year earlier, to $268 million, on a 15 percent decline in revenue, to $1.1 billion. ....