Northern Star grows up
Northern Star Resources has signed off on its most transformative year with a subtle transformation of its corporate practices as it tries to lay claim to industry leadership.
Deloitte has been appointed as auditor, replacing Rothsay Chartered Accountants, and executive salaries have been resized to reflect Northern Star's much- expanded production profile.
This time last year, Northern Star was the owner of the profitable Paulsens underground mine in the Pilbara, producing 100,000 ounces a year.
Twelve months on, following an acquisition spree, Northern Star chairman Chris Rowe told shareholders in the company's annual report released late yesterday he was confident its target output of up to 600,000oz this year "is well on track".
Managing director Bill Beament's base salary this year has been reset at $725,000, up 32 per cent. Company secretary Liza Carpene, who like Mr Beament was with Northern Start before its acquisition spree began, has seen her base pay increase 32 per cent to $300,000.
Aware that higher corporate governance standards are required alongside Northern Star's increased market value and a bigger institutional following, Mr Beament has also dropped his directorship of Australian Underground Drilling (AUD), which provides drilling services at Paulsens. Northern Star has also brought Paulsens' workforce in-house, rather than relying on contract labour including from another Beament-related firm, Premium Mining Personnel.
AUD has picked up $14.3 million of work at Paulsens over the past two years. Mr Beament has been a director since before Northern Star acquired Paulsens, and insiders insist deals with AUD are at arm's length.
It is a similar story with Premium Mining, which has placed $11.5 million of labour at Paulsens over two years. It is thought Northern Star's usage of Premium Mining will be cut this year to help avoid chatter of conflicts or corporate governance issues.
The use by Northern Star of Beament-related contractors has long been sniggered at in some sections of the mining sector.
Northern Star insiders point to the support of the world's biggest mining investor, Black Rock, which last week raised its stake from 13.2 per cent to 14.2 per cent.
