Arts put great stock in generous Forrests’ lifeline

WA Opera, Black Swan Theatre and the WA Ballet are among the groups to have benefited from a surge in the value of Fortescue shares.

West Australian Opera executive director Carolyn Chard, left, with Nicola Forrest on the stage of His Majesty’s Theatre in Perth on Thursday. Picture: Marie Nirme

Some of Western Australia’s most prominent cultural institutions have shared in a multimillion-­dollar windfall as shares in Andrew Forrest’s Fortescue Metals Group touch record highs.

The likes of WA Opera, Black Swan Theatre and the WA Ballet have all benefited from an extraordinary surge in the value of the Fortescue shares they were gifted by the mining magnate and his wife Nicola back in 2011.

The balance sheet windfall from the share price gain, along with the dividends flowing from the miner, have provided much-needed relief at a time when the coronavirus has wreaked havoc across the arts and forced mass cancellations of performances.

The Forrests donated Fortescue shares to several cultural groups after Mr Forrest stepped down as chief executive in 2011.

It was one of the first high-­profile acts of charity by the pair, who have since rolled out a host of philanthropic endeavours via their Minderoo Foundation.

Fortescue shares were trading at about $6 at the time, but they fell to less than $2 in 2015 as the company battled a falling iron ore price and high debt.

However, a stunning run of success since the start of 2019 has sent the shares soaring to a high of $18.92 this month, aided by strong iron ore prices.

Almost all of the groups that received shares back in 2011 still hold the stock. The Art Gallery of WA Foundation owns 500,000 shares, now worth almost $9m; WA Ballet holds 200,000 shares; and the WA Opera has 150,000 shares.

But not all have been so lucky. The WA Symphony Orchestra sold its shares in 2015, when the miner was trading near its lowest levels in the past decade.

WA Opera executive director Carolyn Chard said their holding had climbed in value from $1m at the time of the gift to just under $3m today, and had delivered some $700,000 in dividends and franking credits along the way.

“The dividend income is ­especially valued this year … and contributes to holding the company in good stead while the arts sector in general is suffering due to being unable to carry out its core business of performing live on the stage,” she told The Australian.

Black Swan Theatre, meanwhile, received 200,000 shares from the Forrests but sold 80,000 in July 2015 at just over $2 each. Ms Forrest has served as the company’s chair since early 2018.

Executive director Rick Heath said the shares provided “an enviable security blanket” that allowed it to pursue “extraordinary creative opportunities”.

Ms Forrest said she was pleased the shares had helped their recipients. “It’s wonderful to know that some of WA’s hard-working arts and community organisations are still able to benefit from our 2011 donation,” she said.