Australian mining magnate Andrew ‘Twiggy’ Forrest will have a billion-dollar payday, after a bumper year for his mining company, Fortescue Minerals Group.
Fortescue reported profits after tax surged 49 per cent on last year to US$4.7 billion (AU$6.5 billion), with shareholders set to receive a fully franked final dividend of $1 per share.
That means Forrest, who paid $249 million for an extra 22 million Fortescue shares back in February, will receive a nearly $1.2 billion payout in a single day.
It’s a record result for the mining company, with Fortescue chief Elizabeth Gaines crediting staff for their performance during a tough year.
“For FY20 we delivered record revenue, underlying EBITDA and net profit after tax (NPAT), demonstrating the continued ability of our operations to generate strong cash flows through the successful execution of our integrated operations and marketing strategy,” Gaines said.
“Leveraging the capability in our value chain resulted in record shipments, sustained low cost performance and excellent operating margins which positioned us to deliver record NPAT of US$4.7 billion.”
The company’s full-year shipments were up 6 per cent on last year to more than 178 million tonnes, propelled by a strong demand for iron ore in China.
It’s not the first time Twiggy, who now owns more than 36 per cent of Fortescue, has had a billion-dollar payday, however.
Last year, the mining magnate received a $1.24 billion boost to his bank account after Fortescue results were buoyed by booming iron ore prices.
Forrest is eighth on the Australian Financial Review’s 2019 rich list, with a net worth of $8 billion.
Billionaires’ wealth booming during Covid-19
The pandemic has seen 12 US billionaires’ wealth surge to total US$1 trillion for the first time ever, with social distancing measures and business closures spelling good news for tech founders.
Tesla founder Elon Musk was the biggest pandemic profiteer, with his wealth surging from US$24.6 billion on 18 March to US$73 billion on 13 August - a 197 per cent increase.
Facebook founder Mark Zuckerberg saw his wealth increase by 75 per cent to US$95.5 billion.
Are you a millennial or Gen Z-er interested in joining a community where you can learn how to take control of your money? Join us at The Broke Millennials Club on Facebook!