en.Wedoany.com Reported - Activist investor Elliott Investment Management has disclosed a stake of over A$1 billion (US$715 million) in Northern Star Resources (ASX: AU), Australia's largest gold producer, and called on the company to explore strategic options including a sale. Following the news, Northern Star's shares surged nearly 14% to A$21.03 in Sydney trading on Tuesday, marking the biggest single-day gain in over six years, pushing the company's market capitalization to approximately A$30 billion (US$22 billion).

Elliott noted that despite gold prices hitting record highs, Northern Star has underperformed its peers, and therefore the company should initiate a strategic review covering all options, including a sale. The investor also called for an operational review, board refreshment, and the appointment of a new CEO from outside following the planned departure of current CEO Stuart Tonkin. Tonkin has led Northern Star since 2016, and the company announced in May that he would step down in the coming months.

Elliott stated that it believes there will be significant strategic interest in Northern Star from the market, and that current gold price levels and strong industry cash flows create a favorable backdrop for decisive action.

Northern Star responded by saying it welcomes constructive dialogue with Elliott and noted that it regularly reviews corporate opportunities with advisor Goldman Sachs, including portfolio management and potential M&A transactions. The Perth-based miner ranks among the top ten global gold producers by output and has expanded its growth pipeline through a A$5 billion all-share deal to acquire De Grey Mining, owner of the Hemi project in Western Australia.

Before the news of Elliott's stake became public, Northern Star's shares had fallen over 30% year-to-date. Over the same period, Evolution Mining's shares dropped about 2%, while Newmont's Australia-listed shares were nearly flat.

As of the end of 2025, Elliott managed approximately US$79.8 billion in assets and has become one of the most closely watched activist investors in the mining industry. Last year, the firm disclosed a significant stake in Toronto-based gold producer Barrick Mining (NYSE: B)(TSX: ABX), as the world's third-largest gold producer struggled to profit from rising gold prices. Elliott has also taken action against BHP Group, pushing it to divest its oil and gas business and simplify its dual-listed structure, and has prompted Kinross Gold to conduct a US$300 million share buyback.

Northern Star is currently under pressure from aging mine pits, rising costs, and recent guidance downgrades. UBS stated in March that the company could benefit from selling lower-margin, shorter-life gold mines. Elliott believes that a strategic review will allow the board to weigh potential transactions against the risks of a multi-year transformation.

The Australian Financial Review first reported Elliott's stake in Northern Star on Monday.

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