Northern Star Resources has firmly rejected calls for a company sale or potential takeover, addressing criticism from activist investor Elliott Investment Management over its lagging stock price.
Northern Star’s outgoing Chairman Michael Chaney acknowledged that the company’s share price performance this year had “not met expectations”.
However, the gold giant drew a hard line at Elliott’s proposal to put the entire company on the market.
“We do not consider that this is the right time to do so,” the chairman stated, revealing that while Northern Star had received several merger and acquisition approaches over the past year due to its discounted share price, none were deemed to be in the best interests of shareholders.
Elliott, which has a 3 to 4 per cent stake in Northern Star, had released a presentation critiquing the miner’s recent operational performance, demanding a swift management overhaul and a formal sale process.
The investor noted that the miner has 203 per cent total return underperformance compared to its peers over the last three years and has missed its performance guidance seven times over the last four financial years, including four separate guidance reductions in the first three months of 2026.
Elliott noted that Northern Star has the assets to be a world-class gold miner but a pattern of operational missteps and inconsistent strategic direction has prevented the company from realising that potential.
The investor called for a strategic review, including a potential sale or takeover, in tandem with a CEO search and a process aimed at identifying operational improvements.
Chaney acknowledged Elliott’s concerns over the company’s share price but argued that Elliott’s critique ignored major long-term achievements.
These include the multi-billion-dollar, on-time construction of the new Fimiston processing plant at KCGM and the strategic acquisition of the Hemi gold deposit in the Pilbara.
The company confirmed that its search for a replacement CEO is well underway following the resignation of Stu Tonkin. An international search firm has been engaged, with several internal and external candidates already interviewed.
The company also welcomed Elliott’s suggestions to enhance the board, noting that a search has been underway for the past year to recruit an additional director with deep gold sector experience.
Furthermore, the chairman reaffirmed his own planned retirement for this November, with succession planning finalised.
Chaney also downplayed pressure to spin off its smaller tier-two assets into a separate listed vehicle, revealing that while investment banks had pitched the idea over the last six months, the company remains comfortable holding its current portfolio.
Elliot said the response from the board validated its investment thesis, but the company is still not acting quickly enough to restore shareholder confidence.
“The board cannot simultaneously acknowledge inbound corporate interest, confirm its advisers have modelled structural options, and then decline to run any kind of formal process,” Elliot said.
“The case for a strategic review is now more apparent than it was before the board published its letter.
“No options should be taken off the table, and no outcome should be prejudged – by Elliott or by Northern Star’s Board. This crucial work must begin now.”
