Northern Star Resources picks replacements for CEO Stuart Tonkin and chair Michael Chaney after horror run

Northern Star Resources boss Stuart Tonkin will be succeeded by a Glencore executive who stands to reap $5.6 million before he even starts if his new employer bows to takeover pressure. The gold miner on Thursday announced that University of WA alumni Suresh Vadnagra would step in as chief executive from October 5. Mr Vadnagra is currently the head of Glencore’s nickel and zinc assets, with responsibility for more than 25 operations across the globe, including the Murrin Murrin nickel mine in the Goldfields. A UWA mechanical engineering graduate, Mr Vadnagra was the chief technical and projects officer at global gold giant Newcrest prior to his current Glencore role. He will be paid $1.6 million in cash and $4m worth of Northern Star share rights as compensation for leaving the Switzerland-based Glencore. His annual salary starts at $2.2m with a short-term bonus in cash and shares of up to $3.1m, plus long-term stock incentives worth a maximum of $8.8m. In a sign Northern Star’s leadership is bracing for a takeover battle, Mr Vadnagra will receive cash payments totalling $5.6m if the company is in the midst of being bought out before his October 5 start date. “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 [the Kalgoorlie Super Pit], progressing Hemi and optimising all of our assets,” outgoing Northern Star chair Michael Chaney said. Northern Star on Thursday also revealed the elevation of deputy chair and former investment banker Michael Ashforth, who will replace Mr Chaney at the conclusion of the company’s annual general meeting in November. Mr Ashforth was notably the executive chair of AMB Holdings — the private company of billionaire iron ore heiress Angela Bennett. Northern Star’s sweeping leadership succession comes at a pivotal time for the company, which is the largest gold producer domiciled in Australia. Northern Star has been facing calls for a dramatic overhaul — including a major board shake-up or even putting itself up for sale — by US-based Elliott Investment Management. Elliott last month splashed more than $1 billion buying up a 4 per cent stake. The activist hedge fund said trust had been lost among shareholders by the gold miner’s underperformance. Northern Star’s shares have only gained 3.7 per cent in the past year during a bull market for gold. Its closest local rival, Evolution Mining, gained 48 per cent over the same period. Northern Star has so far resisted calls to put itself up for sale but many investors are worried that its weak share price leaves it vulnerable to an opportunistic, hostile takeover by a global gold giant. Mr Tonkin is set to leave right after the problematic Fimiston Mill expansion at the Super Pit is due to be completed this quarter. His departure follows two production downgrades since the start of 2026, and three since April last year. Northern Star also gave a production update on Thursday, saying the mill expansion was tracking to schedule. Preliminary figures showed gold sold during the June quarter totalled 433,000 ounces, bringing the 2026 financial year sales to 1.54 million ounces, in line with revised guidance of above 1.5moz Shares in the miner were up 3.2 per cent to $19.40 in early trade.