Bill Beament takes pride in saying that they are a dividend-paying company, but are they giving back the money that the shareholders rightfully deserve? Beament needs to be mindful of Northern Star’s shareholders and avoid taking risks with their investments.
Beament says he is a sink or swim type of person, driven to succeed or to fail. He would do just about anything to get what he wants, regardless of how oppressive his conduct is towards his colleagues and shareholders. This conduct invariably finds its way to long and costly litigation, increasing lawyer profits at Northern Star’s expense.
We understand that there are risks associated with mining and believe that Beament is simply a gambler. However, Northern Star’s Executive Chairman may just be overdoing it, taking risks without regard for his partners and shareholders.
Disappointing production results affect shares of investors
Insiders think Beament’s unreasonable expectations for the Alaskan mine and his poor judgment caused the disappointing production results from Northern Star’s Pogo mining operations. Significant loss from increased all-in sustaining costs and the production of low-grade ore from Pogo will affect the value of shareholders’ investments in Northern Star.
The value of the investments of Northern Star investors is at risk of decreasing because of the Alaskan mine’s production results. If Northern Star gets into difficulties under Beament’s management, investors and shareholders will face substantive losses.
Shareholders are uneasy
Investors are perturbed. For how long will Northern Star still be able to earn a profit? Is Beament able to pay future dividends to Northern Star’s shareholders? How much of the profits will actually go back to shareholders?
Bill Beament should be heedful of Northern Star’s shareholders and should be careful taking risks, otherwise, investors will tire of his gambling with their holdings. From the underperforming recent acquisitions of Northern Star and Beament’s major insider share sell-downs, shareholders are wary. They are well-advised to divest their investments to low-risk business opportunities.