Why is the Australian Strategic Materials share price sinking 10% today?

What's got Australian Strategic Materials shares in a tailspin?

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Key points
  • The Australian Strategic Materials Ltd share price is down 10.12% to a 52-week low of $2.93 on Monday 
  • Managing director and CEO David Woodall tendered his resignation with immediate effect 
  • The board appointed current chief operating officer Rowena Smith to take the reins  

The Australian Strategic Materials Ltd (ASX: ASM) share price is heading south today following the shock departure of a senior leadership figure.

During mid-morning trade, the emerging critical metals producer's shares are down 10.12% to $2.93.

man bending over to look at red arrow crashing down through the ground

Image source: Getty Images

Australian Strategic Materials shares hit 52-week low

Investors are offloading Australian Strategic Materials shares after the surprise announcement that its managing director and CEO, David Woodall will leave the company.

According to the release, Woodall's resignation will take immediate effect.

Consequently, the hasty departure has sparked concern among shareholders which is dragging the Australian Strategic Materials share price to a 52-week low.

The board noted Woodall's contribution in progressing the Dubbo project as well as overseeing the partnership agreement with Hyundai Engineering.

Australian Strategic Materials chief operating officer, Rowena Smith will take over the CEO role.

Smith is a highly experienced global mining executive with more than 30 years' experience under her belt.

Having served as chief operating officer since July 2021, Smith led the Dubbo project team to deliver an optimisation study.

Furthermore, she also headed up the construction and commissioning of the Korean Metals Plant.

Prior to joining the company, Smith was the chief sustainability officer and vice president of supply for South32 Ltd (ASX: S32).

She managed teams across a number of countries such as Australia, South Africa, Mozambique, Colombia and the United States.

Chair of Australian Strategic Materials, Ian Gandel said:

We are delighted that Rowena is leading the company through the next phase of its development. Rowena has demonstrated that she is a highly capable leader, underpinned by her extensive experience and track record in the mining sector.

With this appointment, the board has confidence there will be a seamless leadership transition, enabling ASM to continue to focus on delivering its mine-to-metals strategy.

Gandel went on to add:

The board thanks David, who led the company through its early stages following the demerger from Alkane, through to the delivery of a successful optimisation study and the construction of our Korean Metals Plant. We wish him all the success in the future.

About the Australian Strategic Materials share price

Over the past 12 months, the Australian Strategic Materials share price has lost around 60%.

Year-to-date has fared worse, down 72% so far.

Based on today's price, the company has a market capitalisation of roughly $457.10 million.

Motley Fool contributor Aaron Teboneras 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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