Mark Barnaba, Elizabeth Gaines pocketing millions as Greatland Resources surges ahead
Long-time Fortescue directors Mark Barnaba and Elizabeth Gaines have made a glittering start to the financial year via the Andrew Forrest-backed gold producer, Greatland Resources.
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Long-time Fortescue directors Mark Barnaba and Elizabeth Gaines have started the financial year as big winners on gold via ASX newcomer Greatland Resources.
Mr Barnaba, the chairman of Greatland, is up more than $17m pre-tax through his involvement with the gold and copper producer. Ms Gaines, the Greatland deputy chair and former Fortescue chief executive, is estimated to be ahead about $9.2m pre-tax
Mr Barnaba holds Greatland shares worth more than $10.3m on the ASX, and Ms Gaines has a stake currently worth about $5.4m based on director notices filed at the end of the financial year.
The vast majority of their stakes come via share options issued at pittance after they joined the board of then London-listed Greatland in 2022, along with former BHP iron ore boss Jimmy Wilson.
Mr Barnaba and Ms Gaines needed to cash out their vast number of share options and then reinvest 50 per cent of the proceeds as part of Greatland moving to a dual listing on the ASX, as did Mr Wilson and Greatland managing director Shaun Day.
Another Greatland director, Yasmin Broughton, was named as the newest addition to the board of Andrew Forrest-founded iron ore miner Fortescue on Tuesday.
Her appointment means Fortescue and Greatland now have three directors in common, and former Fortescue director of operations Paul Hallam is also a Greatland director.
The Forrest family’s private mining company, Wyloo, owns 8.2 per cent of Greatland – which debuted on the ASX with a market valuation near $4.9bn last week. Wyloo has an option to purchase an additional 10 per cent of the stock at $3 a share if Newmont opts to sell down its stake.
The Forrests – through Wyloo – have made hundreds of millions of dollars on paper since they started backing Greatland in 2022.
The planets have aligned for Wyloo and iron ore veterans Mr Barnaba, Ms Gaines and Mr Wilson since they agreed to join the Greatland board at the same time.
The gold price has soared on the back of geopolitical turmoil, and they have been part of helping Mr Day pull together a stunning deal to acquire the Telfer gold and copper mine and outright ownership of the neighbouring Havieron project from Newmont.
Greatland has also made the big leap to being dual-listed on the ASX and AIM – the sub-market of the London Stock Exchange tailored to help smaller, riskier companies secure capital.
Mr Barnaba was issued 100 million share options and Ms Gaines 55 million at an exercise price of 11.9 pence when they joined as chairman and deputy chairman respectively.
Mr Wilson received 40 million share options along with Mr Hallam, who joined the Greatland board in 2021. Mr Day had 72.7 million options issued at an exercise price of 11.9p in 2023.
The number of options would have played havoc with Greatland’s ASX listing, and had the potential to increase the number of shares the company needed to issue to 307 million, compared to 87 million.
Greatland also noted that ASX recommendations suggest non-executive directors should not receive performance-based options as part of their remuneration, and that options granted to executives should ensure that short-termism is not incentivised.
Instead, Greatland entered into deeds of “surrender and reinvestment” with all holders of the director options – Mr Barnaba, Ms Gaines, Mr Wilson and Mr Hallam – and employee options in the case of Mr Day at 6.64p per option.
It was agreed that the directors and Mr Day would reinvest a sum equal to 50 per cent of the cash they received by subscribing for new fully paid ordinary shares. They were allowed to keep the other 50 per cent, including to pay down tax liabilities.
Mr Barnaba, who has also done well in his role as chairman of AirTrunk, pocketed £3.32m ($6.94m) and Ms Gaines £1.82m.
Ms Broughton’s appointment brings the size of the Fortescue board to 12, including Dr Forrest as the executive chairman. By comparison, bigger iron ore rivals and globally diversified miners BHP and Rio Tinto have 10 and 13 respectively.
Ms Broughton, an experienced company director and legal eagle, played a leading role in this year’s record-breaking sale of a stake in Rio Tinto’s undeveloped Rhodes Ridge iron ore to Japan’s Mitsui.
She was central to the deal as chair of Perth-based VOC Group, the private company controlled by billionaire sisters Leonie Baldock and Alexandra Burt.
The daughters of Michael Wright owned 25 per cent through of Rhodes Ridge through VOC and sold it for $5bn.
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Originally published as Mark Barnaba, Elizabeth Gaines pocketing millions as Greatland Resources surges ahead
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