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New Shareholder Elliott Pushes for Sale of Australia’s Top Gold Miner
The activist hedge fund said the gold miner has underperformed despite higher bullion and urged a strategic review, including a possible sale.
- On Tuesday, Northern Star Resources shares soared after Elliott Investment Management disclosed a more than $1 billion stake in the gold miner and urged the company to pursue a strategic review including a potential sale.
- Elliott Management, led by billionaire Paul Singer, identified operational missteps and cost overruns as reasons for Northern Star's underperformance despite the company holding "world-class" gold mining assets.
- Northern Star Resources shares rallied 9.8 per cent following the disclosure, boosting the mining sector, while other gold miners like Evolution Mining and Newmont experienced declines during Tuesday's trading session.
- Elliott Investment Management is conducting an external search for a new CEO while pushing for a strategic review, as current CEO Stuart Tonkin announced in May he would step down in coming months.
- While Elliott believes there would be "significant strategic interest in Northern Star," gold prices held their decline from Monday, reflecting broader sector volatility as Evolution Mining dropped 2 per cent and Newmont slipped 0.7 per cent.
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New Shareholder Elliott Pushes for Sale of Australia’s Top Gold Miner
Hedge fund Elliott Investment Management, which has built up a stake in Australia’s biggest gold miner, Northern Star Resources Ltd, is calling for a strategic review of the future value creation, including a sale of the company. Elliott, which discloses that it now holds an investment of well over AUS$1 billion (US$718 million) in Northern Star, has published a presentation titled “Northern Star Rising”, outlining the opportunity for the compan…
·London, United Kingdom
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Total News Sources15
Leaning Left0Leaning Right3Center3Last UpdatedBias Distribution50% Center, 50% Right
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
50% Right
C 50%
R 50%
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