Bill Beament, Northern Star’s Executive Chairman, offloaded more of his holdings in the Perth-based gold mining company. He dumped his 3,141,795 shares in Northern Star Resources (NST) as reported in an ASX Announcement on June 2019.
Over the past 2 years, Beament has massively profited from overvalued share prices, selling down over 70% of his shareholding in NST. His inside offloading from 10,589,712 shares to a staggering 3,141,793 has raised many eyebrows. Why has Beament been dumping his shares in NST?
Bill Beament’s major insider sell-downs continue to unsettle Northern Star’s shareholders and investors. Shareholders have begun to question his credibility and the security of their investments.
Beament is cashing of the overcapitalised Northern Star. As the company’s highest-ranking corporate insider, he is privy to confidential information, that enables him to see Northern Star’s falling reserves and increasing production costs – negatively impacting on future share prices.
Beament’s shareholders about to reduce holdings
While Beament continues to offload his remaining holdings in Northern Star in a rising market, existing shareholders, without inside information, are at a disadvantage.
Beament should ensure that he is not using his insider knowledge to his personal advantage, otherwise, he may find himself facing litigation alleging deceptive conduct and a breach of fiduciary duty. Not to mention coming under the scrutiny of financial regulators, the Australian Securities and Investments Commission (ASIC).
Forecasted mass exodus due to oppressive conduct, increasing costs, and falling resources
Beament’s misleading conduct incites concerns from market insiders, partners, employees, and shareholders. Beament’s massive inside selling of shares, bad management decisions, increasing costs, and falling resources will likely result in major changes in Northern Star’s shareholder register.
Shareholders will tire of Beament’s aggressive style. We foresee a mass exodus of shareholders, as they seek to salvage their investments. Beament’s ‘squeaky clean’ reputation will suffer as his flaws are exposed.
Will Beament hold his remaining 3,141,793 shares or will there be further selling? Watch this space as we will forecast Bill Beament dump more of his holdings in Northern Star.