Elliott circles as Northern Star announces new CEO for gold miner Northern Star
Northern Star Resources announced Suresh Vaddnagra as its new CEO on Thursday, as the company reported preliminary gold sales which met revised guidance. This move may satisfy activist investor Elliott who is looking for a major overhaul of the business.
Elliott Investment Management, which amassed an?over A$1 billion stake ($689.10 millions) last month, called for the company to immediately restore shareholder values by changing its leadership.
Elliott didn't immediately respond to a request for comment.
Vadnagra is the head of Glencore’s nickel and zinc industrial assets in Switzerland. He has over 25 years' experience in mining, including at gold miner Newcrest and Hong Kong listed MMG Ltd.
Michael Ashforth, the current deputy?Chairman of Northern Star, was also named to succeed Michael Chaney in the role of chairman after the company's Annual General Meeting in November. Chaney confirmed his retirement in June.
The miner also released its preliminary gold sales figures for the second quarter. At 1.543 million ounces they were 2% above 'consensus' and met revised guidance of over 1.5 million ounces.
Northern Star shares rose up to 4% on Thursday, reaching A$19.56.
Ord Minnett, a broker, said in a report that the company's name should move higher in conjunction with gold price movements overnight. Reporting by Kumar Tanishk, Bengaluru. Editing by Sahal Muhammed & Muralikumar Aantharaman.
(source: Reuters)
