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Investing.com -- Elliott Investment Management stepped up pressure on Northern Star Resources Ltd (ASX:NST) on Wednesday, proposing six independent director candidates after talks with Australia's largest gold miner failed to produce an agreement on board changes.
Northern Star shares rose 2.1% at one point, broadly in line with the strength in gold-related stocks, while the Australian gold sub-index gained 1.2%. The shares, however, remain down about 14% this year.
Elliott, which now has an economic interest of about 5.6% in Northern Star, said it had been unable to agree with the company on a path forward after meeting with management to discuss potential director candidates.
The activist investor first called for a strategic review in early June after building a stake worth more than A$1 billion, representing more than 4% of Northern Star at the time.
The latest move marks an escalation in Elliott's campaign. The investor said Northern Star needs a substantially stronger board to support incoming CEO Suresh Vadnagra and oversee a comprehensive strategic and operational review.
Elliott's proposed slate comprises Susan Corlett, Mark Cutifani, Paul Graves, Mick McMullen, Peter Rozenauers and Graham Shuttleworth. The candidates have experience across large-scale mining operations, finance and governance in Australia, Africa and the Americas.
Among them is Mark Cutifani, the former CEO of Anglo American and AngloGold Ashanti and a current independent director of Woodside Energy. Elliott highlighted his experience operating mines in Western Australia and his role in developing the Super Pit, which now forms a key part of Northern Star's portfolio.
Elliott said it does not seek control of Northern Star's board or to place any of its own employees on the board. It said all six nominees would serve as independent directors representing all shareholders and that it preferred to reach an agreement with Northern Star rather than pursue unilateral action.
The activist argued that Northern Star's total shareholder returns have severely lagged those of its peers despite record gold prices, attributing the underperformance to what it described as execution and governance failures rather than the quality of the company's assets or workforce.
Elliott said it had spoken with Australian and international shareholders who shared its concerns. Elliott said the next step should be a stronger board and a comprehensive operational and strategic review aimed at unlocking the value of Northern Star's assets.
It added that it remains open to working with the company's incoming chair and CEO, Suresh Vadnagra, whose appointment Elliott said makes a fully equipped board particularly important.
