New Hope (ASX:NHC) share price slides following CEO resignation

The company’s shares are set to finish the week on a negative note.

| More on:
Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.

Image source: Getty Images

Key points

  • The New Hope share price sinks 3% to $2.28
  • CEO calls it quits after spending time away from the top job
  • The company has filled the position but is expected to conduct a search for a permanent replacement

The New Hope Corporation Limited (ASX: NHC) share price has been in the red all day today. This comes after the coal miner revealed the unexpected resignation of its CEO.

At the close of trading, New Hope shares were changing hands at $2.28, down 2.98%.

New Hope CEO departs

In today’s statement to the ASX, New Hope advised that its CEO Reinhold Schmidt has tendered his resignation.

No reason was given as to why Mr Schmidt decided to leave following a short period of personal leave. His resignation is with immediate effect.

The company said chief financial officer Rob Bishop would assume the top job while a search was conducted for a replacement.

New Hope chair Robert Millner commented:

Mr Schmidt led the company during a challenging period for both the business and the industry, and delivered organisational changes that positioned the business to withstand the downturn in commodity prices experienced early FY21 and achieve outstanding returns as markets have improved…

The outlook for the company is positive and the board looks forward to working with Mr Bishop and the leadership team to successfully deliver the company’s purpose and strategy.

About the New Hope share price

The New Hope share price has had its ups and downs over the past 12 months, but has ended up clocking a gain of around 45%.

The company’s shares accelerated from June to mid-October, reaching a 52-week high of $2.70. Although, shortly after, its shares nosedived below the $1.90 mark and have since staged a small recovery.

New Hope has a market capitalisation of roughly $1.87 billion, with approximately 832.36 million shares on its registry.

Should you invest $1,000 in New Hope right now?

Before you consider New Hope, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and New Hope wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

A man and a woman sit in front of a laptop looking fascinated and captivated by ASX shares news articles especially one about the Bannerman Energy share price
Energy Shares

Here’s why AGL shares hit the headlines again on Friday

As billionaire Mike Cannon-Brookes continues his campaign against the proposed demerger, shares in AGL closed higher today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Energy Shares

Why is the Woodside share price dropping 4% today?

Woodside shares are ending the week in the red...

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

Why are ASX coal shares charging higher again today?

The global energy crisis has pushed coal prices to all-time highs.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Energy Shares

Here’s why the Beach Energy share price is sliding again on Friday

What's going wrong for the oil and gas producer today? We take a closer look.

Read more »

A green-caped superhero reveals their identity with a big dollar sign on their chest.

How soon can Fortescue start making money from green hydrogen?

Green hydrogen comes from splitting water molecules into their elemental parts.

Read more »

A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.
Energy Shares

New or old energy: Have oil producers bested ASX lithium shares?

Which has been the better investment in the last year? We take a look.

Read more »

A woman stretches her arms into the sky as she rises above the crowd. representing the Strike Energy share price rising today while the rest of the market crumbles
Energy Shares

Here’s why the Strike Energy share price is avoiding the bloodshed today

Strike Energy shares are in positive territory today while the broader ASX market slumps.

Read more »

Woman in office sinking in quicksand into the floor
Energy Shares

Why is the Beach Energy share price sinking 5% on Thursday?

What's going on with the Beach Energy share price? We take a look.

Read more »