Elliott Investment Management revealed on Monday that it has invested A$1 billion in the ASX-listed Northern Star Resources. The activist investor then immediately began making demands, ordering Northern Star to begin a strategic review, find a buyer if necessary, and fix a board that has overseen too many self-inflicted wounds at Australia’s biggest gold miner.
Elliott, which managed approximately $79.8 billion in assets at the end of 2025, laid out its case in an investor presentation. The firm cited a 203% total return underperformance relative to peers over the last three years, which was driven by cost overruns, a troubled processing mill at the company’s Kalgoorlie operations in Western Australia, and separate production problems at the Jundee mine north of Kalgoorlie.
The firm also highlighted that Northern Star has cut production guidance seven times times over the past four years, including four reductions in the first three months of 2026 alone.
Elliott wants a board refresh and a strategic review, including a potential sale, run in parallel with the company’s ongoing external CEO search. And if no sale materializes, Elliott is demanding an investor day be held, with the go-forward strategy for Northern Star clearly outlined.
“Northern Star’s Board must move on multiple fronts simultaneously. That means launching a full strategic review right now, enhancing the Board with directors who bring the credibility and experience this process demands, conducting a rigorous CEO search, and in parallel, building out a compelling standalone plan that proves what this business is worth on its own terms,” the firm wrote in its presentation.
If the changes are implemented, Elliott has suggested that it sees a 55% upside for Northern Star on a price to NAV basis, with the company currently trading at 0.69x versus a peer average of 1.08x on. On EV/FY28 EBITDA, Elliott suggests that Northern Star’s current 3.4x multiple has a 60% upside to a 5.5x senior peer average, although that average is heavily skewed by Agnico’s multiple.
Northern Star, which said it is working with Goldman Sachs Group Inc. as adviser, kept its response measured. The company said it “welcomes the opportunity for constructive dialog with Elliott, as a shareholder of the company.”
It added that it “remains focused on delivering full year guidance” and that the Kalgoorlie mill expansion is on track for commissioning in early fiscal 2027.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
