The Galaxy Resources Limited (ASX: GXY) share price will be on watch on Thursday following the surprise announcement of a change of chief executive officer.
At the time of writing the lithium miner's shares are flat at $2.01.
What was announced?
This morning Galaxy announced the appointment of former BHP Group Ltd (ASX: BHP) production manager and Iluka Resources Limited (ASX: ILU) executive Mr Simon Hay as its new chief executive officer with effect from July 1 2019.
According to the release, Mr Hay is currently Head of Resource Development at Iluka, with accountability for exploration and geology, mine planning and development, major projects and engineering, and technology and innovation.
He has also spent five years in Asia leading Iluka's Asia-Pacific and then global zircon marketing activities and has over a decade of operational experience at assets located across Australia.
Galaxy's chairman, Martin Rowley, revealed that he was delighted to be able to appoint someone of Mr Hay's calibre to be the new CEO of Galaxy.
He said: "Simon has the ideal blend of skills and experience in operational, development and marketing roles to be able to lead Galaxy through its next phase of growth. Simon's recent success in guiding the development of greenfield projects in jurisdictions such as Sri Lanka and Sierra Leone convinced me that he is the best man to lead Galaxy's growth plans for the development of its two world class international assets at Sal de Vida in Argentina and James Bay in Canada."
He added: "Anthony Tse will transition from his current CEO and Managing Director position to an Executive Director focusing on corporate development and marketing."
Should you invest?
Whilst a change of CEO doesn't often go down well with the market, the appointment of Mr Hay does appear to be a big positive at this stage.
Galaxy has a world class Mt Cattlin operation generating significant free cash flow, but also two undeveloped assets with enormous potential. Mr Hay appears to be someone that has the experience to successfully develop these assets.
However, I wouldn't be in a rush to invest in Galaxy or lithium peers Orocobre Limited (ASX: ORE) or Pilbara Minerals Ltd (ASX: PLS) just yet. I would suggest investors keep their powder dry until there has been a major improvement in lithium prices. Until then, I suspect that falling prices of the white metal could weigh on their shares.
