Northern Star’s future depends on an independent chairman

In November 2016, Northern Star (NST) appointed Bill Beament from Managing Director to Executive Chairman, which drew criticism from shareholders who believe that executive chairpeople should be independent of management and have no executive role in the company. 

NST continued to appoint Beament as their Executive Chairman despite knowing that the appointment would raise concerns from shareholders. Beament’s autocratic management style is unnerving. Coupled with poor relationships with joint venture partners on projects like the East Kundana Joint Venture. He seeks to apply an oppressive management style. This will lead to the downfall of the once market darling — Northern Star.

Bill Beament’s personal state of mind is questionable

Beament’s personal issues and instability as a leader continue to unsettle shareholders. 

His personal state of mind is in question. NST’s Joint Venture partners in the East Kundana Joint Venture has expressed genuine concern for Beament, offering assistance. They can see Beament’s status sliding and wish to help.

Beament continues to reduce his shareholdings in NST by over 70% and is likely going to offload more in the near future. It is insider selling where Beament has information that will lead to a decline in the value of NST. 

Beament is ethically and morally unsuitable

Is Beament suitable for his Executive Chairman position in NST? His credibility and ability to make sound decisions are in question. 

Market insiders are sceptical about Beament’s frame of mind and the rumour mill is set alight with his alleged recreational profligacies and personal issues. His reckless disregard of the consequences of his actions makes shareholders doubt Beament’s leadership. 

Beament will do everything in his power to get what he wants, including deceiving and misleading NST’s shareholders. 

If Beament goes downhill, so does Northern Star

It is time for the Perth-based gold miner to oust Beament. NST’s future depends on quality leadership, otherwise, the only direction they will be heading is downwards. They should make the change to give the market confidence that NST’s Board can make the hard and correct decisions.

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