IGO shares slide despite a new CEO being snared from Rio Tinto

Who is the new CEO?

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Key points

  • Nickel and lithium company IGO has appointed a new CEO
  • Ivan Vella from Rio Tinto will take on the top job
  • IGO shares are down nearly 2% today. The ASX 200 materials index is also down 

The IGO Ltd (ASX: IGO) share price is in the red today despite news of a new CEO.

IGO shares are sliding nearly 1.4% today and are currently fetching $14.40. However, the materials sector is also dropping today.

Let's take a look at what's going on with IGO today.

What's going on?

IGO is exploring multiple nickel projects in Western Australia and also has a stake in a lithium joint venture.

The nickel price fell 2% overnight to US$20,755 a tonne. The S&P/ASX 200 Materials Index (ASX: XMJ) is sliding 1% today.

In news today, IGO has hired Ivan Vella to be the company's next CEO and managing director. Vella joins IGO from Rio Tinto, where he has been working for 20 years.

In 2021, Vella took on the role of chief executive, aluminum at Rio Tinto following a stint as chief executive, iron ore.

Commenting on today's news, Vella said:

I am thrilled and honoured to be given the opportunity to join and lead the talented and strong team at this important time in IGO's history.

The company's purpose and values deeply resonate with me and IGO has positioned itself brilliantly to be at the forefront of the global transition to a green energy future. I am looking forward to playing a key role in this next stage of the company's development.

Vella will start the new role by 11 December following a handover at Rio Tinto.

Michael Dusci has been acting as CEO of Rio Tinto during a "rigorous and extensive" global search to fill the top job. Dusci had previously advised the board he did not want to be considered for the position.

Commenting on the new appointment, IGO chair Michael Nossal said:

We are delighted to have been able to attract an executive of Ivan's calibre to join IGO, and look
forward to his vision and leadership in steering the Company through its next exciting phase of
growth.

On behalf of the Board and everyone at IGO, I would also like to take this opportunity to thank and
acknowledge Matt Dusci, our Acting CEO, who stepped up last October after the passing of Peter
Bradford in the most difficult circumstances, and for his commitment to ensuring value-driven
leadership continuity during the transition

IGO share price snapshot

The IGO share price has lost more than 26% in the last year.

IGO has a market capitalisation of more than $10.9 billion based on the latest share price.

Motley Fool contributor Monica O'Shea 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 Scott Phillips.

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