The Lynas Rare Earths Ltd (ASX: LYC) share price is higher following news that the CEO is exiting.
Lynas is one of the largest non-Chinese rare earth businesses in the world. Its rare earths like Neodymium (Nd) and Praseodymium (Pr) are needed for a number of advanced technologies.
The rise may be explained by the fact that a number of other ASX mining shares are up including BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), Rio Tinto Ltd (ASX: RIO), Sandfire Resources Ltd (ASX: SFR) and Northern Star Resources Ltd (ASX: NST).
Retirement of CEO
Lynas announced that CEO and Managing Director Amanda Lacaze has advised the board of directors of her intention to retire after 12 years in the role.
The board has initiated a search process to select a new CEO to lead the company through its next stage of growth. This process will consider both internal and external candidates.
Lacaze intends to remain with the company until the end of the current financial year to enable a smooth transition.
Leadership commentary
Amanda Lacaze said:
I’ve loved every day of my 12 years at Lynas. It has been a great privilege to lead the company from a troubled startup to an ASX50 company. I am extremely proud of our achievements over this time. I am leaving the company in good hands with a fabulous team with unique skills and know-how, and a balance sheet to support future growth plans. Having successfully concluded the Lynas 2025 capital investment program and launched the Towards 2030 growth strategy, it is the right time to make this transition.
The Lynas Chair John Humphrey said:
Amanda has made an outstanding contribution to Lynas and the rare earths industry over the past 12 years. On behalf of the Board and the whole Lynas team, I thank Amanda for her leadership and dedication to our people and our company. This company was in a very difficult position when Amanda took on the role of CEO. It is thanks to Amanda’s hard work, drive and tenacity that Lynas is today a leading rare earths producer and critical supplier to global manufacturing supply chains.
Under Amanda’s leadership, the company’s production and operating footprint has grown and our market value has increased from around $400 million in 2014 to close to $15 billion. This provides an excellent foundation for the company’s continued growth and development.
Final thoughts on the Lynas share price
After rising more than 100% in the past year, Lynas certainly isn’t cheap – rare earths are strategically important.
At the right valuation, the company could be an attractive buy. But, I don’t know when that is because of the shifts in global supply and demand.
It’s challenging to predict what’s going to happen next, so there are other ASX growth shares I’d rather buy with the outlook being clearer to me.
