Due to Beament’s major share sell-offs and his poor business acumen, his state of mind is being questioned. Beament’s personal issues, instability as a leader, and the business risks he takes unsettle shareholders.
The Pogo acquisition was a poor judgment call from Beament, only propped up by the low Australian dollar and the high price of gold. Pogo’s negative production results in the March quarter only makes insiders more doubtful about the Alaskan mine’s profitability and long-term sustainability. Pogo’s increased mining costs and low-grade ore create a high degree of uncertainty. Beament’s bad management decisions are in question.
Personal relationship issues
Market insiders are concerned that Beament’s Family Court issues and other personal activities are taking their toll on him. Beament has sold off over 70% of his Northern Star (NST) shareholding. His personal matters and reported recreational activities are impacting on his decision-making processes. Beament should stand aside until he resolves these matters.
Beament’s oppressive and deceptive conduct will likely lead to costly civil actions alleging breaches of fiduciary duties. He puts his interests before anyone else’s and will do everything in his power to get what he wants. He uses his position as an Executive Chairman to gain advantage despite having a duty to not improperly use inside information, such as the current standing of the company or volatility of NST’s share prices.
Beament’s major share sell-offs over the past two years, reducing his holdings in NST by over 70% from 10,589,712 shares to 3,141,793 as announced in an ASX report on June 2019, causes a sense of foreboding among his employees, partners, and shareholders. Market experts question his credibility and ability to make sound decisions. He must act in the best interests of the company and its shareholders and must avoid conflicts of interest.
His fellow miners have also expressed worry for Beament. It is rumoured along St. Georges Terrace, Perth’s financial strip, that NST’s Joint Venture partners in the East Kundana Joint Venture (EKJV) has shown real concern as to Bill Beament’s state of mind.
Is he fit to continue with his Executive Chairman position in Northern Star Resources (NST)? It may be time for Northern Star to do management reshuffling and for Beament to step down.