Sayona Mining shares plunge 20% amid abrupt CEO exit

ASX 200 investors are pressuring Sayona Mining shares on Monday.

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Sayona Mining Ltd (ASX: SYA) shares are taking a beating on Monday, down 20% in morning trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed on Friday trading for 13 cents. At the time of writing, shares are swapping hands for 10 cents apiece.

For some context, the ASX 200 is up 0.4% at this same time.

Here's why investors are hitting the sell button.

A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.

Image source: Getty Images

What's happening with management at the ASX 200 lithium stock?

Sayona Mining shares are feeling the heat in the wake of the abrupt exit of Brett Lynch as managing director and CEO.

The ASX 200 lithium miner reported this morning that Lynch has resigned for personal reasons, effective immediately. However, the company said he "will facilitate a mutually agreed handover period".

Lynch joined Sayona Mining in July 2019. He's been strategically involved in a number of growth projects. Most notably the acquisition of the North American Lithium (NAL) operation, located in Canada. NAL recommenced lithium production in March.

James Brown, currently a non-executive director, has been appointed interim CEO while the miner transitions to new leadership. Brown has more than 30 years of mining and management experience with more than 10 years in lithium development and operations.

In other management moves, Philip Lucas has been appointed as an independent non-executive director. Lucas is an experienced corporate lawyer with a focus on equity markets, mergers and acquisitions and corporate governance.

In a remark that has failed to halt today's slide in Sayona shares, the board said that it will take this opportunity "to undertake a thorough review of operations and the strategic direction of the company to further enhance shareholder and stakeholder value".

Sayona Mining recently entered the lithium concentrate production phase with its 75% shareholding in NAL. NAL recently delivered its first shipment of spodumene to the international lithium market.

How have Sayona Mining shares been tracking?

Sayona Mining shares were struggling even before the announcement of Lynch's abrupt departure.

With today's intraday losses factored in, shares in the ASX 200 lithium stock are now down a painful 63% over the past 12 months.

Motley Fool contributor Bernd Struben 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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