(Updates to add stock movement in the headline and last paragraph)
Northern Star Resources (ASX:NST) should conduct a strategic review that includes a potential sale, alongside a search for a new CEO, to identify opportunities for operational improvements, shareholder Elliott Investment Management said Monday.
Elliott disclosed a stake of over AU$1 billion in Northern Star Resources, saying it wants to work with the company to maximize shareholder value.
"Northern Star's recent pattern of operational missteps, cost overruns and inconsistent strategic direction demands urgent action," Elliott said, adding that the company has underperformed its potential despite holding world-class gold assets.
The activist investor also urged the company to supplement its board with "fresh perspectives" to help guide the review and subsequent steps.
Elliott further alleged that Northern Star has "deeply inadequate disclosures compared to global senior peers." The company is likely to draw "significant strategic interest" if it explores a sale, Elliott said.
Northern Star Resources did not immediately reply to a request for comment from.
The company's shares rose around 9% in recent Tuesday trade.