ASX lithium share QX Resources soars 70% on ex-Lake Resources MD appointment

Steve Promnitz has taken the reins at the lithium and gold developer.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The QX Resources share price is launching 70% today to trade at 5.6 cents 
  • Its gains come on news the company has appointed former Lake Resources managing director Steve Promnitz to its newly created managing director role
  • Promnitz resigned from Lake Resources in June without providing an explanation 

The share price of tiny ASX lithium hopeful QX Resources Ltd (ASX: QXR) is taking off on news the company has appointed former Lake Resources NL (ASX: LKE) managing director Steve Promnitz.

Promnitz fled the S&P/ASX 200 Index (ASX: XJO) lithium developer in June, seemingly selling his 10.2 million shareholding in the company shortly afterwards.

But Lake Resources' loss appears to be QX Resources' gain. The ASX lithium and gold developer's stock is roaring higher after the company announced its new boss.

The QX Resources share price is soaring 69.7% right now to trade at 5.6 cents.

Let's take a closer look at the news driving the ASX lithium share higher on Wednesday.

A man in a suit and glasses guffaws at his computer screen in bewilderment.

Image source: Getty Images

QX Resources share price surges on MD appointment

The QX Resources share price is rocketing higher today. Its gain comes after the company announced Promnitz will take the reins of the growing Western Australia and Queensland-focused mineral developer.

The former Lake Resources boss will take up the newly created managing director role at the lithium and gold hopeful.

On his appointment Promnitz said he was looking forward to his new challenge, adding:

I plan to advance [QX Resources'] current assets and expand the focus on battery minerals by drawing on my extensive networks and skills from the past six years in the battery minerals sector.

QX Resources noted Lake Resources was a $1 million private company when Promnitz stepped into his former role. By the time he departed, the now-ASX 200 company was said to be worth around $2.1 billion.

QX Resources chair Maurice Feilich also commented on the company's new leader, saying:

QX Resources has assembled a quality portfolio of near drill-ready lithium hard-rock assets in Western Australia with some very promising geology. As well, our gold assets in Queensland hold considerable unlocked value and growth for future development.

QX Resources' board decided now is the right time to appoint a managing director to fast-track the development of these assets while also assessing new battery minerals projects that complement the portfolio.

We are confident that [Promnitz] can drive QX Resources to the next stage of its growth and development.

Motley Fool contributor Brooke Cooper 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.

More on Materials Shares

Man with rocket wings which have flames coming out of them.
Materials Shares

Guess which ASX All Ords share is rocketing 20% on lithium battery news

Not all shares have been caught up in the market selloff.

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Materials Shares

Down 24% in a month, is the Pilbara Minerals share price now a bargain buy?

Could this be a lithium lover's delight or are Pilbara shares fraught with danger?

Read more »

Female ASX travel shares investor with surprised expression drinks a cup of tea while reading the newspaper at her desk
Materials Shares

Guess which ASX lithium share turned one sceptic into a bona fide believer

Green lithium extraction has changed the position of this lithium boom critic.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Broker Notes

Arafura stock sell-off continues, broker tips 35% upside

Recent weakness could be a buying opportunity for investors according to one broker.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Materials Shares

Piedmont Lithium shares: 150% upside or big short opportunity?

Investors will need to wade through the muck to determine if Piedmont Lithium shares are a good buy right now.…

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

How to generate $20k of passive income from BHP shares

BHP could provide investors with a big pay check in 2023.

Read more »

shocked man with hands over his face with a declining graph in background representing falling CleanSpace share price
Materials Shares

Lynas share price resets 52-week low twice in one week

March has been a shocker for this ASX rare earths share.

Read more »

Female worker sitting desk with head in hand and looking fed up
Materials Shares

Piedmont Lithium share price sinks following short attack response

Piedmont Lithium has responded to a short seller attack on Friday.

Read more »