Elliott turns up heat on Northern Star with six board picks
The activist investor also lifted its stake to 5.6% to build pressure for sweeping changes at Australia’s largest gold miner.
Activist investment firm Elliott Investment Management is intensifying its efforts against Northern Star Resources (ASX: NST), submitting six potential director candidates in lieu of reaching an agreement on board changes with Australia's leading gold miner. The firm, which had begun advocating for alterations in June with an investment exceeding A$1 billion ($706 million), currently holds a 5.6% stake in Northern Star.
Elliott's primary objectives include substantial board modifications, thorough strategic and operational assessments, and the inclusion of independent directors with relevant operational, financial, and governance expertise to support the incoming CEO, Suresh Vadnagra.
Elliott has assembled a diverse slate of six candidates, citing the magnitude of necessary changes. Among them is Mark Cutifani, a former CEO of Anglo American (LON: AAL) and AngloGold Ashanti (NYSE: AU) (JSE: ANG), currently serving as an independent director at Woodside Energy (ASX: WDS). Cutifani was instrumental in developing Kalgoorlie's Super Pit, a key asset in Northern Star's portfolio.
Other candidates include Graham Shuttleworth, former CFO of Barrick Mining (TSX: ABX) and Randgold Resources (NYSE: B); Paul Graves, former CEO of Arcadium Lithium and head of Rio Tinto Lithium; Mick McMullen, former CEO of Metals Acquisition (NYSE: MTAL), Detour Gold, and Stillwater Mining (JSX: SSW); Susan Corlett, a former investment director at Pacific Road Capital with extensive experience on ASX-listed boards; and Peter Rozenauers, a former managing partner at Orion Resource Partners who managed global mining portfolios.
Elliott contends that Northern Star's assets should have generated superior shareholder returns during a period of elevated gold prices, attributing the shortfall to operational and governance deficiencies rather than the inherent quality of the deposits or workforce. The miner has encountered persistent production challenges, including two revisions to its fiscal 2026 outlook due to issues surrounding its Kalgoorlie operations and the progression toward an expanded processing facility.
Northern Star ultimately extracted slightly more than 1.5 million ounces of gold in fiscal 2026, meeting revised guidance while awaiting the completion of the KCGM mill expansion.
The board push coincides with Northern Star's impending management transition, with Vadnagra set to assume the roles of managing director and CEO on October 5, succeeding Stuart Tonkin. Elliott maintains that while leadership change is a crucial element, a robust board is equally vital to supervise a viable operating plan and evaluate strategic opportunities.
Elliott expressed a preference for a negotiated settlement with Northern Star, involving the addition of several candidates and determining an appropriate board size, rather than unilateral measures. The firm asserts a track record of introducing over 150 directors to corporate boards over the past 15 years, typically through negotiated agreements.
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