Paladin shares soared on the news.
It is fair to say that under Borshoff Paladin has grown to a unique position in the uranium industry and that he is regarded as a world authority on the metal.
However, his constant insistence that the price turnaround for uranium was just around the corner had started to wear thin.
While Paladin hit a high of $9.57 in April 2007, in a period when uranium was running at its hottest, it has never really come close to those highs again. Today, Paladin’s share price sits at 19.7c.
Ironically, the announcement of his resignation came the day before Japan restarted one of its nuclear reactors.
Japan shutdown all of its reactors in the wake of the Fukushima disaster in 2011, the world’s worst nuclear disaster since the 1986 Chernobyl meltdown. Indeed, the fallout from that 2011 disaster cut uranium prices off at the knees.
Borshoff had his employment contract with Paladin extended by a year in 2013 and then by two years in 2014.
With Borshoff gone, Paladin has put Alexander Molyneux, who acted as an adviser to 14.6% stake holder HOPU Investment Management with respect to its initial investment in Paladin, in as interim CEO.
Molyneux’s core mandate will be to make Paladin cashflow positive in the present uranium price environment; focus on accelerating strategic initiatives that deliver value; and help the board find a permanent CEO.
The 40 year old was president and CEO of Mongolian coal miner SouthGobi Resources from 2009 to 2012 when he co-founded Azarga Resources Group, a private partnership focused on minerals sector merchant investment.
Meanwhile, Borshoff has agreed to remain in a transitional role during the six-month notice period required in his contract.