Australia lithium developer Core Lithium [ASX:CXO] has announced the immediate exit of its Managing Director, Stephen Biggins, who has helmed Core Lithium for the last 12 years.
CXO foreshadowed Biggins’ exit earlier in the year — saying in March that he would finish up before the end of 2022.
The outgoing managing director thought the official opening of the Finniss Lithium Mine was an auspicious time to exit.
CXO shares were up 5% in late afternoon trade. The CXO stock is up 90% year to date.
Source: tradingview.com
CXO MD to exit
Core Lithium has revealed the immediate departure of long-serving Managing Director, Mr Stephen Biggins, highlighting a new era led by incoming CEO Gareth Manderson.
25 March brought the first announcement of Mr Biggins’ intention to step down from the role, with an open-ended departure date set sometime before the end of 2022.
Mr Biggins remained with the company during Manderson’s handover, assisting the new CEO in getting to know the company and taking firm hold of the reins.
Recently CXO announced the opening of its Finniss Lithium mine, and it is off the back of this milestone saw Mr Biggins make the abrupt decision that now is the ‘appropriate time’ to leave his role.
Core Lithium’s board thanked Mr Biggins’ contribution to the company, acknowledging his ‘remarkable service’ in his time serving as director over the past 11 years.
Mr Biggins bid his farewell with the following statement:
‘The Finniss Lithium Mine official opening was the culmination of 12 years of rewarding dedication to achieve this rare milestone and I feel that now is the right time to step down as ‘Managing Director. I want to take this opportunity to thank the Board, management, employees and shareholders of Core as well as the stakeholders in the successful Finniss Project’ both in the NT and around the globe for their support over the years.
‘Now is the ideal opportunity to hand over the leadership to Gareth as he has settled into the role as CEO. The business is now in great shape, the financial performance is strong, and at the Finniss Lithium Project, we have built a platform for sustainable growth for many years to come.’
With the official opening of CXO’s Finniss Mine, the completion of a $100 million placement, and the company selling its first spodumene product earlier in the month on the Digital Exchange, Core Lithium has had a busy few weeks.
It will be interesting to see how incoming CEO Gareth Manderson pivots CXO to a lithium producer in the months ahead.
Is there money left in the lithium sector?
In 2021, lithium stocks dominated the ASX — eight of the 10 best-performing stocks on the All Ordinaries in 2021 were lithium stocks.
But 2022 hasn’t been as kind to lithium stocks.
Take CXO itself. While Core Lithium shares are up 90% year to date, they have been down 20% in the past six months.
Lake Resources [ASX:LKE], another junior highflyer from 2021, has been down 55% in the past six months.
Does that mean investors should look beyond the lithium sector?
Not necessarily.
Yes, the easy money in lithium stocks has been made. But we believe there are still smart plays to be made.
You just have to be selective.
We’ve recently published a research report on three overlooked ASX lithium stocks you can access for free here.
Regards,
Kiryll Prakapenka,
For Money Morning
