Activist hedge fund Elliott Investment Management has stepped up pressure on Australian gold producer Northern Star Resources, putting forward six potential directors after negotiations with the company failed to deliver agreement on board changes, according to a report by Northern Miner.
Elliott disclosed that it now owns a 5.6% stake in Northern Star, having initially built a position worth more than AUD1bn ($706m) in June. The New York-based investor is calling for significant changes to the miner’s board alongside broader reviews of its strategy and operations.
The activist said it is not seeking control of Northern Star and does not intend to appoint Elliott employees to the board. Instead, it wants independent directors with experience spanning mining operations, finance and corporate governance to help incoming chief executive Suresh Vadnagra.
Elliott said it had assembled a diverse group of candidates because it believes Northern Star requires substantial changes to improve performance.
The nominations represent an escalation of a campaign that began in June. Northern Star’s board had previously indicated that it was willing to consider Elliott-backed directors, but the hedge fund said subsequent discussions failed to produce an acceptable agreement. Elliott has now made the candidates public, allowing other shareholders to assess its proposals.
The proposed directors include Mark Cutifani, former chief executive of Anglo American and AngloGold Ashanti and a current independent director at Woodside Energy. Cutifani has also been involved in the development of Western Australia’s Super Pit, a major asset within Northern Star’s portfolio.
Other nominees include Graham Shuttleworth, formerly chief financial officer of Barrick Mining and Randgold Resources; Paul Graves, the former chief executive of Arcadium Lithium who subsequently led Rio Tinto’s lithium operations; and Mick McMullen, previously chief executive of Metals Acquisition, Detour Gold and Stillwater Mining.
Elliott has also nominated Susan Corlett, a former investment director at mining-focused private equity firm Pacific Road Capital and an experienced ASX-listed director, and Peter Rozenauers, previously a managing partner at Orion Resource Partners with responsibility for global mining investments.
The activist argues that Northern Star has failed to translate its high-quality asset base and a record gold-price environment into stronger shareholder returns. Elliott attributes the shortfall to what it characterises as persistent operational and governance weaknesses.
Northern Star has experienced several production challenges, including two revisions to its fiscal 2026 guidance as problems at its Kalgoorlie operations and the expansion of its processing facilities affected output.
The company ultimately produced just over 1.5 million ounces of gold in fiscal 2026, in line with its revised target, while commissioning work continues on the expanded KCGM processing plant.
The board dispute comes shortly before a leadership change at Northern Star. Vadnagra, currently responsible for Glencore’s nickel and zinc industrial assets and formerly an executive at Newcrest Mining, is scheduled to take over as managing director and chief executive on October 5, replacing Stuart Tonkin.
Elliott supported the need for leadership with operational and turnaround experience, but argues that replacing the CEO will not be sufficient to address the company’s challenges.
The hedge fund wants a strengthened board capable of overseeing a more credible operational plan and evaluating the full range of strategic alternatives available to Northern Star.
Despite the escalation, Elliott said it would prefer to reach an agreement with Northern Star on the appointment of several candidates and the appropriate size of the board rather than proceed unilaterally.
The investor said it has helped place more than 150 directors on corporate boards over the past 15 years, with negotiated settlements accounting for the vast majority of those appointments.
Northern Star shares rose 0.7% to AUD22.96 in Sydney trading, giving the gold producer a market value of roughly AUD32.7bn ($23bn).
