Gold miner Northern Star names new CEO, Elliott presses for review (updated)
UPDATE 3-Gold miner Northern Star names new CEO, Elliott presses for review Adds Elliott comment in paragraph 5-6, adds approach to Northern Star for comment in paragraph 7, updates share price in paragraph 10
By Melanie Burton and Kumar Tanishk
MELBOURNE, July 2 (Reuters) - Northern Star Resources NST.AX said on Thursday that Suresh Vadnagra would be its next CEO as it reported preliminary gold sales that met guidance, and as activist investor Elliott reiterated the miner's need for a strategic review.
Australia's biggest gold miner was the target of a move in June by Elliott Investment Management, which amassed an over A$1 billion ($690 million) stake and called on Northern Star to immediately restore shareholder value by changing its leadership, citing severe underperformance.
Vadnagra, who will take over as CEO effective October 5, is head of Glencore's GLEN.L nickel and zinc industrial assets based in Switzerland. He has more than 25 years of mining experience including with gold miner Newcrest and Hong Kong-listed MMG Ltd 1208.HK.
Northern Star also said Deputy Chair Michael Ashforth would succeed Michael Chaney as chairman after the company's annual general meeting in November. Chaney had confirmed in June that the current term would be his last.
Elliott noted the leadership changes in a statement and said it remained committed to seeing the company "realize its full potential".
"The need for substantial board enhancement and a comprehensive strategic review has not diminished, and we look forward to engaging with Northern Star's new leadership on these topics and delivering the value that shareholders deserve," Elliott said.
Northern Star did not have an immediate comment on Elliott's statement.
Northern Star released preliminary gold sales at 1.543 million ounces for the year ended in June, meeting revised guidance of more than 1.5 million ounces. The sales figures were 2% higher than consensus, according to figures from broker Ord Minnett.
"This is a slight positive (production beat/succession plan) and in combination with overnight gold price movements should see the name move slightly higher," said broker Ord Minnett in a note.
Northern Star shares were up 3.3% at A$19.42 by 0215 GMT on Thursday.
($1 = 1.4512 Australian dollars)
(Reporting by Kumar Tanishk in Bengaluru; Editing by Sahal Muhammed, Muralikumar Anantharaman and Tom Hogue)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))