Elliott Management has called for Australia's largest gold miner Northern Star Resources to put itself up for sale after building a near-5% stake following more than A$1 billion investment. The move comes as Northern Star's shares have collapsed 43% this year after operational issues triggered multiple profit warnings and production downgrades.

The Florida-based hedge fund detailed Northern Star's underperformance in a report published Tuesday. The fund called on the board led by Michael Chaney to explore a sale rather than a turnaround under new management. Northern Star's market cap stands at A$29.6bn after shares gained 12% following Elliott's stake disclosure.

Elliott has a history of activism in mining, previously targeting Barrick Mining and BHP. The fund believes Northern Star's Fimiston "super pit" in Kalgoorlie could become the second-largest "tier one" asset globally if expanded. The call for sale reflects broader sector consolidation, with Newmont acquiring Australia's Newcrest for A$29bn last year.