Wealthy Australians Forrest and Rinehart Transform Iron Ore Into Priceless Gold
From Rags to Riches(ish): Iron Ore Magnates Dip Their Toes in Gold
Forget about medieval alchemists turning lead into gold, that's hogwash. But two Australian titans, Gina Rinehart and Andrew Forrest, have found their own version of gold alchemy, transforming iron ore into, well, gold.
Rinehart, worth a cool $30.1 billion according to Forbes, and Forrest, with a fortress of his own at $14.8 billion, have added gold to their iron ore portfolios. For Rinehart, it's a serendipitous expansion. A 10% stake in a small lithium exploration company has blossomed into a gold venture, aiming to capitalize on gold's record high of over $3380 an ounce.
This lithium company, Delta Lithium, has taken a hit due to an 80% lithium price drop. However, it's now resurrecting the Mt. Ida goldmine in Western Australia, situated near Lake Ballard, famous for its steel statues by British artist Antony Gormley.
Forrest, on the other hand, is playing a more active game. He's aiming to build a world-class goldmining powerhouse, centered around the Telfer mine in Western Australia. His efforts have propelled Greatland Gold, currently on the London Stock Exchange, to spectacular heights, with a staggering 150% share price increase to 14.6 pence.
Forrest and his wife, Nicola, through their company Wyloo, hold an 8.45% stake in Greatland, but with indirect interests, their stake could balloon to 21%. This could potentially turn their initial investment into a hefty $500 million fortune.
The transformation of Greatland from obscurity to an emerging gold powerhouse has been a complex journey, involving a series of deals, capital raisings, and the recruitment of major industry players to its board. The chairman, Mark Barnaba, is a long-time director of Fortescale, the Forrests' iron ore empire. Other board members include Elizabeth Gaines, a former CEO of Fortescale, and Jimmy Wilson, a former head of BHP's iron ore division.
So, while gold might be a secondary interest to their iron ore riches, with rising gold prices and falling iron ore prices, gold could become a more tempting prospect. After all, who wouldn't want to turn their iron ore wealth into a bit of glittery gold?
- Gina Rinehart, with her existing wealth from iron ore, is likely to see a significant profit from her investment in a lithium exploration company that has evolved into a gold venture.
- Andrew Forrest, venturing beyond iron ore, is actively building a goldmining powerhouse, with Greatland Gold currently on the London Stock Exchange seeing a 150% share price increase.
- The success of Greatland Gold, led by industry veterans, may likely result in Forrest and his wife, Nicola, seeing a $500 million fortune from their indirect interests in the company.
