Why did the Core Lithium share price just crash 6%?

Investors are bidding down the Core Lithium share price today.

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The Core Lithium Ltd (ASX: CXO) share price is having another day to forget on Monday.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed on Friday trading for 16.5 cents apiece. In late morning trade today, shares are swapping hands for 15.5 cents apiece, down 6.2%.

For some context, the All Ords is up 0.6% at this same time.

The Core Lithium share price is underperforming the benchmark and most of its lithium peers following a major new leadership announcement.

Here's what we know.

CEO appointment fails to lift Core Lithium share price

As you're likely aware, March saw the rather abrupt departure of former Core Lithium CEO Gareth Manderson. The company's CFO, Doug Warden, was appointed as interim CEO.

Today, the Core Lithium share price has failed to ignite on the news that Paul Brown will take over the helm commencing on 4 June.

The board noted Brown's 25 years of experience in the Australian resources industry. That includes his prior leadership roles with ASX rare earths miner Hastings Technology Metals Ltd (ASX: HAS), Mineral Resources Ltd (ASX: MIN), and Fortescue Ltd (ASX: FMG).

Brown is currently serving as the CEO of Perth-based Hastings, and he was said to have played a vital role in delivering significant mining operations during his stint with Fortescue and Mineral Resources.

What did management say?

Commenting on the new leadership appointment intended to turn the battered Core Lithium share price around, chair Greg English said, "Paul is an outstanding executive with 25 years' experience in the Australian mining industry and a proven track record of operating and delivering across different commodities."

English also alluded to restarting lithium mining at the company's flagship Finniss project in the Northern Territory, which was paused in January due to plunging lithium prices.

"Paul's lithium mining and operations experience makes him the ideal person to lead Core as we prepare to restart mining at Finniss in a cost efficient and sustainable way," he said.

English added:

The board's priorities in selecting a new CEO were identifying someone with lithium mining experience who will consider all options for the restart of mining operations to guide Core's activities in response to the low price lithium environment.

Brown offered some optimistic words for the ASX lithium stock's outlook.

"Core is an excellent company with the potential to grow into a significant lithium company," he said.

Brown continued:      

I will focus on an operational review of the Finniss Lithium Project and the opportunities for the exploration program to grow resources.

I look forward to working with the Core senior team to transform the way we work as we look to continually improve and develop a sustainable lithium project.

Undoubtedly, he has his work cut out for him.

The Core Lithium share price is down a painful 86% since this time last year.

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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