Northern Star Resources Ltd (ASX:NST) shares jumped 10.3% after activist hedge fund Elliott Management revealed it had built a stake worth more than $US1 billion in the gold miner and called for urgent changes to address operational and strategic shortcomings.
The $US80 billion Florida-based investor said Northern Star had suffered from operational missteps, cost overruns and inconsistent strategic direction, contributing to production downgrades and the recent departure of chief executive Stuart Tonkin.
In a presentation titled Northern Star Rising, Elliott urged the $26 billion company to undertake a strategic review, consider a potential sale, and appoint new directors with fresh perspectives while searching for a new CEO. Elliott argued the market views Northern Star as an underperforming operator with a history of failing to deliver major projects on time and within budget.