Source : BUSINESS NEWS
Northern Star Resources has announced new leaders to succeed Stuart Tonkin and Michael Chaney, but detail in the terms has left the door ajar to a potential buyer.
Suresh Vadnagra has been appointed CEO and managing director of Northern Star, replacing Stuart Tonkin from October 5.
He will be joined by incoming chair Michael Ashforth, who has served as deputy chair of Northern Star and will succeed chair Michael Chaney in November.
Northern Star chief financial officer Ryan Gurner will be promoted to deputy CEO.
Mr Vadnagra is based in Switzerland, where he leads Glencore’s nickel and zinc industrial assets – a portfolio which includes more than 25 operations.
Before Glencore, Mr Vadnagra was chief technical and projects officer at global goldminer Newcrest.
The appointments of Mr Vadnagra and Mr Ashforth come amid sustained pressure from Florida-based activist fund Elliott Funds Management, which has taken a dim view of the goldminer’s previous management and board.
Mr Chaney and Elliott have exchanged letters in recent months, after the activist fund suggested the goldminer should not rule out a sale to realise its full potential.
With that comes increased interest in the names and backgrounds of those taking up executive roles with Northern Star.
Northern Star noted that Mr Vadnagra’s time at Newcrest included “a key role in reshaping Newcrest’s portfolio strategy”, commentary that comes amid speculation that some of the company’s assets – particularly its Carosue Dam mine – could be sold.
A graduate of The University of Western Australia, Mr Vadnagra will be paid $2.2 million per annum for the job and receive a $1.6 million sign on payment.
Northern Star’s announcement noted that Mr Vadnagra would also receive a one-off $1.6 million payment in the event of a “change of control event” before his employment starts.
The clause which would financially protect the incoming CEO if Northern Star were to be taken over before he starts.
Short term performance rights of up to $2.3 million will also be on offer, with long-term performance rights of $4.4 million also on the cards.
Both will be subject to shareholder approval.
Mr Chaney said Mr Vadnagra was the right person for the job.
“Suresh is an accomplished mining executive with experience and capabilities to unlock the full potential of our assets and our people – from ramping up KCGM, progressing Hemi and optimising all our assets,” he said.
“The board believes his broad operational experience and leadership qualities can deliver significant value for all our shareholders.”
Mr Chaney thanked Mr Tonkin for his leadership at Northern Star, where he has worked for 13 years in an executive capacity.
Mr Ashforth will take over from Mr Chaney in November, having served as deputy chair of Northern Star since July 2025.
His experience includes 30 years across law, investment banking and corporate advisory, as well as a nine-year stint on the Takeovers Panel.
Elliott issued a brief statement in response to today’s leadership appointments.
“Elliott notes Northern Star’s announcements and remains committed to seeing the Company realize 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.”
Northern Star also revealed it produced 1,543,000 ounces of gold last financial year – above its downgraded guidance of more than 1.5 million ounces.
Full-year results will be announced on July 29.
Northern Star shares were up 3 per cent, to $19.37.
