ASX 200 lithium stock wobbles amid big leadership news

The ASX 200 lithium stock is shaking up its leadership team.

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Key points

  • ASX 200 lithium stock IGO is set to get a new board chair.
  • Vanessa Guthrie has been appointed as the new chair, effective 1 January, succeeding Michael Nossal, bringing significant industry experience to IGO's board.
  • In its September quarter results, IGO maintained a stable spodumene price and reported increases in EBITDA and free cash flow, while expressing its commitment to growth through exploration and partnerships.

S&P/ASX 200 Index (ASX: XJO) lithium stock IGO Ltd (ASX: IGO) is losing ground today. 

IGO shares closed yesterday trading for $5.06. In late morning trade on Thursday, shares are changing hands for $4.97 apiece, down 1.8%.

For some context, the ASX 200 is up 0.6% at this same time.

The IGO share price remains up 2.5% year to date.

That's the latest price action for you.

Now here's what's happening on the IGO board.

ASX 200 lithium stock announces new chair

In a non-price sensitive announcement this morning, IGO reported that Vanessa Guthrie has been appointed non-executive director, effective from 1 December, and incoming chair of the board. 

Guthrie will succeed current chairman Michael Nossal, who will step down on 1 January.

The IGO board said it unanimously endorsed Guthrie as its preferred candidate.

A highly experienced executive, with PhD in geology, Guthrie is currently non-executive director of Santos Ltd (ASX: STO), Lynas Rare Earths Ltd (ASX: LYC), and Orica Ltd (ASX: ORI).

Commenting on her appointment as chair of the ASX 200 lithium stock, Guthrie said:

IGO has a clear strategy and purpose and, as the company transitions from its current operating base to new opportunities, the board has an important role to play in providing leadership and guidance while maintaining high standards of governance.

I look forward to working with my fellow board members and the executive team in the period ahead as we execute the next chapter in IGO's story.

Outgoing chair Nossal said:

In the last two years under managing director and CEO Mr Ivan Vella's leadership, IGO has undergone an exciting process of strategy refresh and transformation while retaining our key purpose and values. It therefore feels like an appropriate time to renew and refresh the board, including a transition of the chair role.

Nossal added, "I have every confidence that Vanessa will ensure the board is well placed to guide and deliver on the company's refreshed strategy."

What's been happening with IGO shares?

The ASX 200 lithium stock closed up 1.5% when it reported its September quarter results on 30 October.

IGO reported that its realised spodumene price was broadly steady over the three months at US$730 per tonne, despite ongoing lithium market volatility.

Highlights from the quarter included underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $19 million, up from $5 million in the June quarter. 

And IGO's free cash flow of $15 million was up from $2 million the prior quarter.

On the balance sheet, the ASX 200 lithium stock retained $287 million net cash as at 30 September.

Looking ahead, IGO CEO Ivan Vella said on the day:

IGO remains committed to our growth pathway, including through exploration and partnerships where we bring technical and operational expertise. We have a number of targets and opportunities we are progressing to deliver future value.

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 recommended Lynas Rare Earths Ltd. 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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