Andrew Forrest’s wealth hits at least $13bn as Fortescue Metals Group shares surge

The rising share price and iron ore price gains could also mean another big FMG dividend payout.

FMG’s share price rise now has it as the 13th-biggest Australian listed company by market capitalisation, above Woodside Petroleum, Coles Group and Newcrest Mining. Picture: Marie Nirme

Andrew Forrest’s wealth has hit the $13bn mark as shares in his Fortescue Metals Group continue to surge.

FMG shares hit another record high during trading on Monday morning, and have already risen more than 10 per cent since January 1 – adding at least $1bn to Mr Forrest’s paper wealth in less than three weeks.

Mr Forrest’s shareholding in FMG hit $12.99bn alone on Monday when shares in the iron ore miner peaked at $11.92, with the company’s market capitalisation now more than $36bn overall.

The booming equity markets have also resulted in the share wealth of other prominent Australian business identities reaching unprecedented levels.

Fund manager Hamish Douglass and his Magellan Financial Group co-founder Chris Mackay are both billionaires after seeing their paper fortune rise by more than $700 million each in the past year, while Afterpay bosses Nick Molnar and Anthony Eisen have seen their shares rise by $300 million each.

Meanwhile, Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar’s share wealth is up at least a combined $5 billion in the same time.

Given Mr Forrest owns other assets outside of FMG conservatively worth more than $200m, it means Mr Forrest’s personal wealth is at a record high of more than $13bn and that he is closing in on the likes of Anthony Pratt and Gina Rinehart among the ranks of Australia’s richest billionaires.

It also means Mr Forrest’s wealth is up by about $7bn since the 2019 edition of The List – Australia’s Richest 250 was published by The Australian last March.

Whether FMG’s share price growth is maintained depends on the longer-term outlook for iron ore prices. According to Bloomberg data, nine of the 21 analysts covering FMG have a “sell” recommendation on the stock and its current trading levels have already exceeded any 12-month price targets.

But the surging FMG share price this month, which has coincided with an increase in iron ore spot prices, could also mean another big dividend payout for Mr Forrest and his fellow shareholders when the company announces its half-year results in February, and also another substantial cheque for his Minderoo charitable foundation.

Mr Forrest has ploughed much of his cash holdings into the foundation, which also holds some FMG shares that are attributed to him when director and shareholder interests are declared.

The foundation’s 2019 annual report published in November showed it has net assets of $1.35bn after a $655m injection earlier last year from the mining magnate following a FMG dividend payment. The foundation spent $75.2m on projects and partnerships in 2019.

Mr Forrest earlier this month announced a $70m pledge for bushfire relief and prevention measures and programs.

His Minderoo is launching a series of initiatives during the 2020 financial year focused on the rise of artificial intelligence and also supports a wide range of other causes, including efforts to help put an end to slavery, ending childhood cancer deaths, cutting plastic waste and reducing the disparity between indigenous and non-indigenous people.

FMG’s share price rise now has it as the 13th-biggest Australian listed company by market capitalisation, above Woodside Petroleum, Coles Group and Newcrest Mining.

Mr Forrest’s other assets include a property portfolio that holds assets in Perth and Sydney, and ownership of the privately held Harvest Road Group.

The latter has beef, aquaculture and horticulture interests including the Harvest Road Beef brand which operates six cattle stations across Australia.

The most recent Harvest Group financial accounts for the 2018 financial year showed the business making a pre-tax profit of about $15m from $303m revenue.

Some of his other ASX-listed shareholdings have also performed strongly. Nickel firm Mincor also hit a 12-month high on Monday, while biotech company Invex Therapeutics is up 27 per cent since January 1.

Meanwhile, Poseidon Nickel is down 13 per cent this year and Vimy Resources, which counts a Northern Territory uranium project among its assets, has halved in value in six months.