Gold miner Northern Star names new CEO, Elliott presses for review
MELBOURNE - Northern Star Resources said on Thursday that Suresh Vadnagra would be its next CEO as it reported preliminary gold sales that met guidance, and as activist investor Elliott reiterated the miner's need for a strategic review.
Australia's biggest gold miner was the target of a move in June by Elliott Investment Management, which amassed an over A$1-billion ($690-million) stake and called on Northern Star to immediately restore shareholder value by changing its leadership, citing severe underperformance.
Vadnagra, who will take over as CEO effective October 5, is head of Glencore's nickel and zinc industrial assets based in Switzerland. He has more than 25 years of mining experience including with gold miner Newcrest and Hong Kong-listed MMG.
Northern Star also said deputy chairperson Michael Ashforth would succeed Michael Chaney as chairperson after the company's AGM in November. Chaney had confirmed in June that the current term would be his last.
Elliott noted the leadership changes in a statement and said it remained committed to seeing the company "realize its full potential".
"The need for substantial board enhancement and a comprehensive strategic review has not diminished, and we look forward to engaging with Northern Star's new leadership on these topics and delivering the value that shareholders deserve," Elliott said.
Northern Star did not have an immediate comment on Elliott's statement.
Northern Star released preliminary gold sales at 1.5-million ounces for the year ended in June, meeting revised guidance of more than 1.5-million ounces. The sales figures were 2% higher than consensus, according to figures from broker Ord Minnett.
"This is a slight positive (production beat/succession plan) and in combination with overnight gold price movements should see the name move slightly higher," said broker Ord Minnett in a note.
Northern Star shares were up 3.3% at A$19.42 by 02:15 GMT on Thursday.
