Core Lithium (ASX:CXO) share price falls on shock CEO exit

Core Lithium’s CEO is heading to the exits…

| More on:
Red exit sign on brick wall

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Core Lithium's shares are in the red today after the company announced the exit of its CEO.
  • Stephen Biggins is leaving after almost 12 years for personal reasons.
  • Mr Biggins will leave the company by the end of the year.

The Core Lithium Ltd (ASX: CXO) share price is under pressure on Friday.

In morning trade, the lithium developer’s shares are down 2.5% to $1.21.

Why is the Core Lithium share price falling today?

Investors have been selling down the Core Lithium share price today following the release of a shock announcement.

According to the release, the company’s founding managing director and CEO, Stephen Biggins, has revealed that he is resigning and will step down from the role by the end of the year. The release notes that Mr Biggins is resigning from the company for personal reasons.

The outgoing managing director believes he is leaving the company in a strong position to achieve its goals. He said:

After nearly 12 years with Core, I am proud of the contribution I have made to the discovery and development of the Finniss Lithium Project and growing the company to become Australia’s next lithium producer.

Core is in perfect position to reach its next stage of growth as a lithium producer, and I feel it is the right time to step down as managing director and pass the torch on to the right person to lead Core in this next stage.

Our transformation from explorer to producer is progressing to plan, the financial performance is strong, and at the Finniss Lithium Project, we have built a platform for sustainable growth for many years to come.

What now?

The release notes that the Core Board has appointed Korn Ferry to commence a thorough and competitive executive search for a new CEO.

Until then, the company’s chair, Greg English, believes it will be business as usual.

He commented: “Stephen was a foundation director of Core and has put the company on a pathway for a stronger future. With the development of the Finniss Lithium Project, he has led the biggest transformation in the company’s history and has set Core up for strong earnings growth.”

Motley Fool contributor James Mickleboro 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 Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

The OZ Minerals share price has barely moved since rocketing on BHP’s takeover bid. So, what now?

Things have gone quiet with OZ Minerals. We take a look at what's next.

Read more »

Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.
Resources Shares

How have ASX nickel stocks been performing in 2022?

While most people are aware of the crucial role of lithium in lithium-ion batteries, nickel is also a critical battery…

Read more »

A group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.
Resources Shares

Why did ASX mining share Conico rocket 30% today?

What did this junior miner reveal to the ASX today?

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
Capital Raising

This ASX mining share just crashed 37%. Here’s why

Investors have turned sour on this small-cap mining share...

Read more »

a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.
Resources Shares

Guess which ASX lithium share just rocketed 20%

The Aussie-based lithium explorer is now the largest holder of lithium mining claims in the US state of South Dakota.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Dividend Investing

Here’s the BHP dividend forecast through to 2026

Where is the BHP dividend heading in the coming years?

Read more »

a man sits in unhappy contemplation staring at his computer on his desk in a home environment, propping his chin on his hand.
Resources Shares

The ASX 200 share Firetrail just bought after brutal sell-off

If a stock has lost one-third of its value over the last four months, would you be courageous enough to…

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Broker Notes

Is the BHP share price a buy after the miner’s FY22 results?

Is this mining giant a buy? Here's what this broker thinks...

Read more »