Is Bill Beament capable of competently performing the duties of Executive Chairman of Northern Star Resources (NST)? With his opportunistic tendencies, his oppressive conduct, and schoolyard-bully tactics, it is only a matter of time before Beament and NST implode in a wave of issues, ending in litigation.
Expenditure trends increase
Market observers are concerned about Beament’s reckless production strategies and lack of efficiency. Northern Star Resources had over-expenditure compared to their budgeted mine plans. From 2016 to 2018, Beament’s Perth-based gold miner had a steady high budget stope grade and a decrease in total mined grade.
Negative cash flows continued in the March quarter at Pogo under Bill Beament’s leadership. Expenditure trends rise, putting NST’s share price at risk.
Since 2016, Beament’s NST has seen unsustainable trends in costs and significantly less profitable gold production. Bill Beament sets uncommercial mining forecasts that can only be achieved by mining lower-grade deposits increasing production costs, essentially foregoing profit.
Beament’s self-interests come first
As NST’s Executive Chairman, Bill Beament has the ethical and fiduciary duty to manage the company in the best interests of its shareholders, which should be his top priority.
Beament’s massive insider sell-offs, selling over 70% of his personal shareholdings in the past 2 years, leads to mistrust and uncertainty from shareholders. It will most likely lead to major changes in the company’s shareholder registry. Bill Beament’s actions will likely lead to sell-offs and NST’s share price will plummet as a result.
Stand down, Mr Beament!
Beament’s poor business acumen and arbitrary leadership will create issues for investors and shareholders, leading to likely loss and reputational risks for the gold miner.
Bill Beament needs to step out of NST before they suffer at the hands of an unforgiving share market.
Let the elephant in the gold room out! It won’t be long before skeletons in Beament’s closet surfaces, bringing not only himself down but also Northern Star Resources.