Kipp left the company yesterday, just weeks after a guidance downgrade saw its share price slump further after a weak performance this year.

Macquarie said Kipp’s departure was a board decision and he took the rap for the recent guidance downgrade.

“It is not operational related. Rather, the board is dissatisfied with Boart's share price performance,” Macquarie said.

“There is a recognition that Boart needs to communicate better with the market. In the board's view, new leadership is required to do this.”

Boart is searching for a replacement.

Macquarie said Boart’s balance sheet was in good shape and no major change of strategy was expected.

“Boart is yet to see the impact of volume declines and price degradation, both of which are likely to feature in FY13 as majors reign in their exploration budgets (extent to which this occurs will be in key focus) and juniors pull back further due to a lack of funding availability,” Macquarie wrote.

Macquarie has a neutral rating for Boart with a price target of $A1.62.

“Mr Kipp's departure creates further uncertainty for Boart, particularly with the company having to navigate its way through a tougher macro environment going forward,” analysts said.

Boart’s share price has performed poorly this year, trading at over $4.40 in March before slumping to $1.09 last month, a 75% drop.

Its shares traded at over $20 in 2007, prior to the global financial crisis.

Boart shares closed at $1.70 today.