Sydney, June 13, 2026, 05:14 AEST
- Northern Star Resources closed at A$19.26 on Friday, up 5.13%. That beat the ASX 200, which rose 1.98%.
- Elliott Investment Management wants Northern Star to strengthen its board and start a strategic review. Northern Star has rejected the idea of a sale process at this time.
- Northern Star’s next event is its June-quarter results, set for July 29. Investors are focused on the progress at the KCGM mill, the CEO handover and the company’s outlook for FY26.
Northern Star Resources Ltd jumped Friday, reversing a sharp slide earlier in the week after activist calls and CEO uncertainty shook shares. The gold miner traded at A$19.26, up A$0.94, or 5.13%. The ASX 200 added 1.98%. Reuters had reported on Thursday’s sell-off, which sent the stock down 5.3% to A$17.55, lowest since March 24, after Elliott Investment Management pushed again for changes.
Elliott is pressuring Australia’s biggest listed gold miner, asking if its campaign will prompt quicker changes. The hedge fund has revealed a stake worth over A$1 billion and wants board seats and a formal review of strategy, Reuters reported. That review could include asset sales, spin-offs, mergers, or even selling the whole company. Elliott pointed to operational errors, seven missed forecasts in four years, and lagging shares compared to rivals.
Northern Star’s board pushed back on calls for an immediate sale, but said it hears investors’ concerns. In a June 10 letter to shareholders, chairman Michael Chaney said share price action this year “has not met our expectations” and said the board is open to talks with Elliott. On the sale-process plan, Chaney wrote: “we do not consider that this is the right time to do so.” He said the board passed on several corporate-combination offers in the past year, saying they weren’t right for shareholders.
Northern Star’s bull case centers on its long-life gold assets and a A$500 million buyback. The company said in its March quarter it sold 381,000 ounces of gold at an all-in sustaining cost of A$2,709 per ounce. AISC covers both operating costs and sustaining capital for each ounce. Northern Star said the KCGM Mill Expansion is still set for commissioning in early FY27, with investors watching for higher throughput and more cash once it’s online.
The risk for Northern Star is that the recovery story still hangs on execution, and shares have already been hit after missing targets. Back in March, Northern Star warned that even reaching the low end of its full-year output guidance was going to be hard, blaming softer results and mill problems at KCGM, as well as weaker output at Jundee. The miner kept its FY26 outlook for gold sales above 1.5 million ounces and AISC between A$2,600 and A$2,800 per ounce, though that forecast leans hard on how much gold KCGM can push through its mill.
Gold prices remain a risk. Reuters said Friday spot gold was up 0.3% at US$4,227.17 an ounce, but still down 2.3% this week as bets on higher interest rates hurt the non-yielding metal. Gold doesn’t pay interest or dividends, so higher rates drag on demand. That’s important for Northern Star, since revenue hinges on gold prices. Higher operating costs or weaker production can limit gains from strong bullion.
The next big date is the June 2026 quarterly result out on July 29, with FY26 numbers to follow August 20. Investors are also waiting for news on the CEO search, board changes, Elliott’s plans, KCGM commissioning, and if Northern Star can prove its cheaper stock is about short-term stumbles and not something bigger.
Northern Star is looking risky, not obvious value, based on today’s facts. Shares have bounced from the activist-driven low seen Thursday. Bulls still point to the asset base for a possible value unlock. But with questions over production, new leadership, pressure from the board, and softer gold this week, the stock seems geared to investors willing to handle a volatile turnaround.
