Lynas (ASX:LYC) CEO Amanda Lacaze Steps Down After 12 Years: Buy the Dip or Take Profits?

Lynas CEO Amanda Lacaze steps down after 12 years

Lynas Rare Earths (ASX: LYC) shares are in focus after the company announced that CEO Amanda Lacaze will retire after 12 years in the role. Shares initially jumped 3% on Tuesday before settling up around 2.4% at A$15.14 as investors weighed what this means for the company’s future. Lacaze will stay until the end of June while the board searches for her replacement, looking at both internal and external candidates.

Her track record is hard to match. When Lacaze joined in 2014, Lynas was worth around A$400 million and struggling to survive. Today, the company is valued at close to A$15 billion and has become the world’s largest producer of separated rare earths outside China.

As portfolio manager Andy Forster at Argo Investments put it, “She’s done a good job; she’s positioned the company well. I don’t know who they could get next, but there’s no way you’d get another Amanda.” For investors, the key question is whether this marks a well-timed leadership handover or the start of uncertainty for one of the ASX’s most important companies.

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What Lacaze Built and Why Her Exit Matters

Lacaze transformed Lynas from what she called “a troubled startup” into an ASX50 company with global importance. Under her leadership, the company renegotiated debt with Japanese stakeholders, built a new processing plant in Kalgoorlie, and became a critical supplier to Western manufacturers seeking alternatives to Chinese rare earths.

This positioning has become increasingly valuable as governments push for supply chain security. Rare earths are essential for electric vehicles, wind turbines, and defence systems, placing Lynas at the heart of the global energy transition. The company has completed its Lynas 2025 capital investment program and launched its “Towards 2030” growth strategy, giving the new CEO a solid foundation.

Dylan Kelly from shareholder Terra Capital described her achievements as “spectacular”, noting that Lynas has “a plant up and running, way ahead of any of the competition.” That competitive lead may be her most important legacy.

The Financial Reality Behind the Share Price

While Lynas has delivered strong long-term returns, the current numbers tell a mixed story. Revenue rose 32% year-on-year to A$151.1 million in Q4 2025, showing the business continues to grow. However, full-year earnings fell roughly 90% as lower rare earth prices hit margins hard.

The stock has delivered 108% returns over the past year but has also fallen around 30% from October highs near A$21. This pullback shows some investors have already taken profits. At current prices, the trailing P/E ratio sits above 1,700 times, a reflection of the recent earnings trough, a level that demands near-perfect execution to justify.

The company maintains a strong balance sheet to fund its growth plans. But the high valuation leaves little room for disappointment, whether from operational issues, weaker prices, or missteps during the leadership change.

The Investor’s Takeaway

The bull case remains solid. Lynas is the only major Western producer of separated rare earths, enjoys strong government support, and has a clear growth strategy. The strategic moat that Lacaze built is not going away just because she is.

The bear case centres on valuation and execution risk. With earnings down 90% and the stock trading at premium multiples, investors are paying for a future that depends on flawless delivery. Adding succession uncertainty makes the near-term risk-reward less attractive.

Our take: Long-term holders who believe in the rare earths story may choose to stay put, as Western supply chain diversification remains a powerful tailwind. However, new investors might want to wait for clarity on who takes the helm. Watch for the CEO succession announcement in the coming months, as this will be the key catalyst that either restores confidence or extends uncertainty.