Under-Pressure Northern Star Names New CEO and Chair
Gold miner picks external candidate as Tonkin’s successor, amid pressure from Elliott
Northern Star Resources (ASX: NST) has appointed a new CEO and chairman as it looks to fend off an activist campaign by Elliott Investment Management.
In May, Northern Star announced that managing director Stuart Tonkin would step down during the September quarter after 13 years with the gold miner.
It comes after the company slumped by nearly 25% in the first five months of 2026 following four guidance downgrades.
A month ago, Elliott released a presentation, slamming Northern Star’s “profound underperformance” and calling for board renewal, a full operational reset and a strategic review.
At the time, it called for Northern Star to hire a world-class external CEO with extensive gold mining experience.
It seems that Northern Star heeded that advice, today announcing the appointment of Suresh Vadnagra as MD and CEO from October 5.
Vadnagra, a mechanical engineer with an MBA, is currently head of Glencore Nickel and Zinc Industrial Assets, based in Switzerland.
Before Glencore, Vadnagra was the chief technical and projects officer at Newcrest Mining and was also previously a member of the executive team at Melbourne-based copper miner MMG (HKEX: 1208).
In addition to his base salary and short and long-term incentives, Vadnagra will receive A$5.6 million in cash if Northern Star is taken over prior to his start date.
Northern Star said Vadnagra’s appointment was the culmination of a comprehensive global search which assessed internal and external candidates.
“Suresh is an accomplished mining executive with the experience and capabilities to unlock the full potential of our assets and our people – from ramping up KCGM, progressing Hemi and optimising all of our assets,” Northern Star chairman Michael Chaney said.
“The board believes his broad operational experience and leadership qualities can deliver significant value for all of our shareholders.
“Critically, his track record of execution and deep commitment to safety will ensure that we continue the vital work of keeping all of our people safe and helping them achieve their full potential.”
Tonkin will leave the company during the current quarter with chief financial officer Ryan Gurner to act as interim CEO between Tonkin’s departure and Vadnagra’s start date.
Chairman change
In a letter to shareholders last month, Chaney confirmed he would step down as chairman following Northern Star’s annual general meeting in November.
Today, the company announced that Michael Ashforth would succeed Chaney as chairman.
Ashforth has been on the Northern Star board for two years as an independent director and was appointed as deputy chairman in July 2025.
The company said Ashforth’s background in governance, transactions, capital allocation and leadership oversight positioned him well to lead the board through Northern Star’s next phase of growth.
Ashforth’s previous roles include as partner of law firm Freehills, managing director of investment advisory Gresham Partners, executive director of Macquarie Capital and regional advisor at Goldman Sachs.
Elliott issued a brief response to today’s news.
“Elliott notes Northern Star’s announcements and remains committed to seeing the company realise its full potential,” it said.
“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.”
Chaney confirmed in his letter last month that Northern Star was keen to appoint as least one additional director with deep gold sector experience and confirmed candidates had been interviewed.
Guidance met
Northern Star announced today that preliminary total gold sold in the June quarter was 433,000 ounces, a 14% increase over the March quarter.
Argonaut head of research Hayden Bairstow said the result beat his forecast by 17% and consensus forecasts by 11%.
The June quarter performance took Northern Star’s 2026 financial year production to 1.54 million ounces, in line with revised guidance of above 1.5Moz.
For the Kalgoorlie Production Centre in Western Australia, total gold sold was 844,000oz for the year, with 468,000oz produced at the flagship KCGM operation, meeting revised guidance.
Following a three-year construction period, the KCGM mill expansion project, which will more than double plant capacity from 13 million tonnes per annum to 27Mtpa, is tracking to schedule and remains on track for commissioning shortly.
The consolidation of the Gidji roaster facility to the new Fimiston mill remains on track for the end of this year.
The Yandal Production Centre in WA sold 434,000oz of gold and Pogo in Alaska sold 265,000oz, in line with revised guidance.
Costs will be reported with the company’s full quarterly report on July 29.
At the end of June, unaudited cash and bullion totalled A$1.25 billion with no corporate bank debt.
During the quarter, A$129 million in shares were purchased as part of the A$500 million on-market share buy-back program.
Investors responded positively to the news with Northern Star shares rising by as much as 4.4%, outperforming its gold sector peers.
“The key near-term catalyst is the completion of the KCGM mill expansion, which would be a step change in production at the Kalgoorlie operations,” Bairstow said.
“The chairman and CEO succession was swift, which we view as a positive.”
Bairstow maintained his hold rating and A$22 price target. Northern Star shares traded as high as A$19.66 on Thursday.