BREAKINGVIEWS-Elliott goes gold panning in deposit-rich river

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Antony Currie

MELBOURNE, June 2 (Reuters Breakingviews) - The activist wants to overhaul Northern Star. The $19 bln Australian miner has some of the world's best yellow metal assets. Yet a series of blunders melted 40% of its value since March and cost the CEO his job. A sale to a cash-rich peer could deliver swift returns.

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CONTEXT NEWS

Elliott Management on June 1 said it has taken a more than 4% stake in $19 billion Australian gold miner Northern Star Resources. The Florida-based activist investment firm wants the company to consider selling to a rival as one option in a broader strategic review that would also include hiring an external CEO, appointing more mining experts to the board and building a new broader management team.

Shares in Northern Star had fallen 40% since March after a series of production downgrades and concerns over transparency. Stuart Tonkin, CEO since 2016, said on May 21 that he would step down before the end of September once his successor is found.

The miner's stock rose by more than 11% in morning trading in Sydney on June 2.


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