Activist Investor Elliott Demands Board Revamp at Northern Star

(Bloomberg) — Activist investor Elliott Investment Management LP has urged Australia’s biggest gold miner Northern Star Resources Ltd. to overhaul its board, and named six nominees it said would restore market confidence in the company. 

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The miner should appoint these candidates to oversee an “objective, thorough strategic and operational review,” Elliott said in an open letter on Wednesday. 

Mark Cutifani, former chief executive officer of Anglo American Plc, and Graham Shuttleworth, former chief financial officer of Barrick Gold Corp., were among the six nominees. 

Northern Star has repeatedly lowered its production guidance over the past year as issues at its Kalgoorlie processing plant in Western Australia constrained production and weighed on its performance relative to peers.

Elliott has amassed a 5.6% stake in the company since launching its campaign against the miner in June, when it called for the potential sale of the business and a new CEO with operational and turnaround experience. A month later, Glencore Plc’s head of nickel and zinc, Suresh Vadnagra, was appointed to the role, to replace outgoing CEO Stuart Tonkin on Oct. 5.

The other board candidates put forward by Elliott are Susan Corlett, former Investment Director at Pacific Road Capital; Paul Graves, former CEO of Arcadium Lithium Ltd.; Mick McMullen, an ex-CEO of Metals Acquisition Corp.; and Peter Rozenauers, a former managing partner at Orion Resource Partners. 

“We have recruited a broad and complementary pool of candidates because we believe the scale of change required is significant,” Elliott said in the letter. “A company with assets of this calibre should be among the sector’s strongest performers. Yet over the past several years, Northern Star’s total shareholder return has severely lagged that of its peers,” it added.

A spokesperson for Northern Star did not immediately respond to a request for comment.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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