Sydney, June 11, 2026, 06:05 AEST
- Northern Star dropped 3.54% to finish at A$18.54 on Wednesday. The S&P/ASX 200 ended up 0.57%.
- Chairman Michael Chaney pushed back on Elliott’s push for a sale, saying the board doesn’t think now is the right time.
- Gold slid 3.5% as worries about rate hikes hurt metals prices. The drop in spot bullion added to the day’s market pressures.
Northern Star Resources dropped in the latest ASX trade. The board said no to selling, ending takeover chatter stirred by Elliott Investment Management’s push. Shares ended down 3.54% at A$18.54, leaving the gold miner with a market cap near A$26.46 billion. The S&P/ASX 200 moved up to close at 8,653.30.
Northern Star’s stock did more than follow the sector. The real shift came after the board responded to Elliott’s push, saying a sale is off the table for now. Chair Michael Chaney told shareholders in a June 10 letter that Elliott owns about 3% to 4% of the company and that the share price this year has “not met our expectations.”
Northern Star is in focus after Elliott said the miner is a quality business dragged down by bad execution. Elliott, which says its funds have more than A$1 billion in Northern Star, has demanded a review of strategy as the company searches for a new CEO. The activist also wants changes to operations and the board. Reuters said earlier this month that Elliott’s review push includes the option of a sale.
Chaney’s letter addressed some of the pressure, but not enough to prompt a near-term auction. He said Northern Star had fielded approaches from several companies during the past year about possible corporate combinations, but talks didn’t move forward because they weren’t in shareholders’ interests. Chaney also said investment banks had pitched spinning off smaller assets into a separate listed company, and Northern Star’s adviser had looked at those ideas. The board is choosing to keep the assets for now, but will continue to review its portfolio.
The board gave way a bit on governance. Northern Star said it’s hiring a new managing director and CEO after Stuart Tonkin leaves, bringing in an international search firm and looking at both internal and external options. Chaney said he plans to retire at the end of his term in November, and the board will look at Elliott’s director picks if they can bring something useful.
Gold slipped again on Wednesday. Spot gold dropped 3.5% to US$4,111.95 an ounce, Reuters said, hitting its lowest since March 23. Traders stayed wary as Middle East tensions added to worries about inflation and rates. Higher interest rates tend to hurt bullion, which pays no yield. Gold stocks on the ASX tracked the slide. Google Finance had Evolution Mining off 5.04%, Newmont CDI down 3.09%.
Northern Star’s buyback didn’t keep up with the selling. The company bought 391,063 shares on June 9 for A$7.45 million, according to its June 10 ASX update. It had already repurchased 4.42 million shares for A$91.94 million. There are 17.82 million shares left under the buyback cap.
Northern Star’s March-quarter numbers put the focus on costs. The company sold 381,000 ounces of gold at an all-in sustaining cost (AISC) of A$2,709 an ounce. AISC covers operating costs plus the capital needed just to keep mines going. Northern Star reported underlying free cash flow at A$301 million and stuck with its FY26 guidance, still aiming for over 1.5 million ounces sold and an AISC between A$2,600 and A$2,800 per ounce.
Northern Star’s own report spells out why Elliott’s push got traction. The miner kept FY26 guidance tied heavily to mill throughput at KCGM in Kalgoorlie. It cut KCGM gold sales guidance to 450,000–480,000 ounces from an earlier 520,000–550,000. Northern Star also warned spending on the KCGM Mill Expansion will be higher, blaming weak construction productivity and cost inflation.
Fimiston is at the center of the board’s standalone plan. Northern Star says the KCGM Mill Expansion is set to replace 85% of the current 13-million-tonne processing limit, with throughput climbing to 27 million tonnes a year in Stage I. Stage I is still expected to start up in early FY27. The company added that gold sales guidance depends on when it commissions the new capacity.
Investors might not stick around. If gold prices drop further, the buyback won’t do much for sentiment. A weak KCGM result, more delays in hiring a new CEO, or Elliott staying vocal could keep Northern Star’s valuation under pressure. Hemi, the De Grey project Northern Star bought, still needs permits and signoffs before a planned investment decision in FY27.
Northern Star’s next big date is the June 2026 quarterly, due July 29. The board is hoping for a clear result to help make its case against selling, arguing the company can close its valuation gap on its own. But if the KCGM unit stumbles again, Elliott could press its arguments harder before the annual meeting in November.
