Wealth Creators

• $1.4bn in dividends for , Andrew Forrest in past five years • Top 50 public company investors worth about $11 billion • Contractors, lithium miners performing well • Rod Jones hopeful on tech investments Healthy dividend in building wealth

The five WA people with the largest holdings in listed companies have earned around $1.5 billion in dividends in the past five years, with Andrew Forrest and Kerry Stokes leading the way.

Matt Mckenzie TRIPLING of the past five years (see One wealth creator Mr Ellison has rein- [email protected] Fortescue Metals table, page 23). ranking high on the list vested a portion of those @Matt_Mckenzie_ A Group’s dividend But despite the higher but receiving minimal gains, with about 30,000 this year to 45 cents dividend, Fortescue’s dividends is prospector shares bought through per share has produced share price dropped from Mark Creasy. MinRes’s plan in the past a near $500 million around $6 in November His shareholdings are two years. windfall for chairman last year to be $4.67 on worth about $530 mil- Mr Ellison has also Andrew Forrest. November 20, the cut-off lion, the bulk of which enjoyed a rapid capi- Mr Forrest controls date for compiling the are in gold and nickel tal gain via the MinRes a third of Fortescue 2017 BNiQ Search Engine miner Independence shares, with the value of through a range of vehi- Wealth Creators list (see Group, which acquired his portfolio more than cles, including Forrest page 26). Sirius Resources in 2015. tripling in the past two Family Investments As a result, Mr For- Mr Creasy had a 35 per years to be about $402 (Peepingee Trust), Tat- rest’s total wealth held cent stake in Sirius. million. tarang Investment Trust in publicly listed busi- Other investments Altogether, the nesses has fallen from include Sirius spin-off state’s 50 most suc- about $6.5 billion in 2016 S2 Resources, and a cessful wealth creators to be $4.9 billion this stake in Africa-focused have shareholdings % year. White Rivers Explora- worth about $11 billion Seven Group Hold- tion, which had been combined. ings executive chairman rumoured to be pursu- Big wins INCREASE55 IN VALUE OF Kerry Stokes, ranked ing an overseas stock KERRY STOKES’ HOLDINGS second, also earned a big exchange listing. Lithium miners and dividend, with a payment Of eight listed miners mining contractors IN ASX-LISTED ENTITIES of 41 cents a share across with Creasy backing were among the biggest (PAST 12 MONTHS) his 207 million shares, tracked by Business movers in 2017. worth about $85 million. News, only Independence Minerals direc- Since 2013, Mr Stokes Group, which is in pro- tor Neil Biddle had the and Minderoo Group, has earned about $417 duction at multiple sites, highest portfolio growth which is associated with million in dividend pay- paid a dividend, with the of investors tracked Minderoo Foundation. ments from Seven Group. remainder focused on by BNiQ in the past 12 With just more than a Mr Stokes’ vehicles exploration and project months, with his shares billion shares under Mr include Australian Capi- development. in the soon-to-be lithium Forrest’s control, total tal Equity, North Ashby Mineral Resources miner and another busi- dividend payments to and Wroxby, the latter founder Chris Ellison ness, Spitfire Materials, Forrest-associated enti- of which holds a 19.8 per and Navitas founder rising 228 per cent. ties would have been cent stake in Capilano Rod Jones (see interview, Altura Mining director around $468 million Honey, worth about $32 page 24) are calculated Allan Buckler was a new this year, according to million. to have received about addition to the wealth research by Business His shares in ASX-listed $100 million in dividend creators list this year, News, up from $156 mil- companies are worth payments between them with shares of around lion in 2016. about $3 billion, and in the past five years, $78 million, bolstered by That brings Mr For- have increased around 55 although both compa- a trebling of that com- rest’s total dividend per cent in the past year nies had reinvestment pany’s stock price as it stream from the busi- thanks to a strong rally programs in place during ness to $984 million in by Seven Group. that time. Continues on page 4 2 | businessnews.com.au businessnews.com.au | 3 CHRIS ELLISON: Value of Mineral Resources shares up 21 per cent. Photo: Attila Csaszar 2 | businessnews.com.au businessnews.com.au | 3 ANDREW FORREST: Received dividends of $468m this year. Photos: Attila Csaszar Healthy dividend in building wealth

From page 2 which moved from were appointed, a move and Southern Cross sold a million shares less than $2 this time that was cancelled Electrical Engineering in the business in late heads towards produc- last year to be $3.61 on after creditors received director Frank Tomasi November. tion of its lithium project November 20. payment. (up 51 per cent). That earned him in the Pilbara. Mr Fotios’s Galaxy Including Eastern Monadelphous manag- $19.2 million, while his Altura executive direc- shares were worth Goldfields, Mr Fotios’s ing director Rob Velletri remaining shares in tor Paul Mantell, with around $73 million, while total portfolio was worth benefitted from a big rise Monadelphous were holdings of $26 million, his stock in gold miner $125 million, about 30 per in that company’s share worth about $19.6 million also saw major growth Eastern Goldfields was cent more than this time price, with his holdings at the time of writing. this year and sits just valued at $45 million last year, and nearly 10 growing 61 per cent to It isn’t the first big inside the top 50. when it last traded. times its value two years $37 million. share sale by Mr Rubino. Mining entrepreneur That company has ago. John Rubino, who is In 2011, he sold a parcel Michael Fotios did very had a rollercoaster few Contractors with executive chairman at of a million shares in the well from his holdings months, however, with major growth included Monadelphous, would company for $21.5 million. in lithium miner Galaxy shares suspended in Ausdrill founder Ron have ordinarily qual- Business News esti- Resources, shares in August after liquidators Sayers (up 107 per cent) ified for the list but mates Mr Rubino would

4 | businessnews.com.au MICHAEL FOTIOS: Galaxy Resources shares now worth $73m.

per cent to $144 million. Maya Glickman ($49 SEARCHENGINE Dividend payments to million). ...your key to WA business Mr Lennon would have Both share the value been worth around $17 of those holdings with million in the past five other parties. DIVIDEND PAYMENTS $m SHARES ON THE RISE – THIS YEAR – FIVE YEARS years. More women feature Neil Biddle  228% While a number of when including private Andrew Forrest 984 Ron Sayers  107% female directors have wealth, with Hancock  roles at companies based Prospecting chairman Kerry Stokes 417 David Watson 97% Seven Group Holdings in Western , worth Peter Cook  84% they are are not included about $10.4 billion, Chris Ellison 54 Mineral Resources Tony Lennon  64% on the list due to their according to the BRW Rod Jones Rob Velletri  61% non-resident status. rich list, and Bianca Navitas 45 Kerry Stokes  55% They include May Chee Rinehart worth $2 .7 Mark Creasy Kong, who is an alternate billion. 6  Independence Group Frank Tomasi 51% director of property Angela Bennett, the player United Overseas heiress to the Wright have additionally reaped the past five years. was another big winner Australia ($53 million), family fortune, was about $9.4 million in div- Land developer Peet in the past year, with his and Sky & Space Global reportedly worth about idend payments during chairman, Tony Lennon, shareholding growing 64 satellite mission analyst $1.8 billion.

businessnews.com.au | 5 Tech next step for Jones post-Navitas Navitas boss Rod Jones talked to Business News about the next chapter for the $1.8 billion education provider he founded, and his hopes for the technology ventures he’s backing.

Matt Mckenzie AVITAS boss The company is work- things that interest me, of the list of sectors ripe [email protected] Rod Jones may ing on production of a and I’m not the sort of for disruption. @Matt_Mckenzie_ Nbe preparing to new type of satellite dish person who can just go Rather than turning step aside from his role for the delivery of signals away and retire; I’d go education on its head, at the education provider from telecommunications nuts, I need things to do,” however, Mr Jones he founded in 1994, but he nodes to houses. Mr Jones said. believes changes in edu- has no shortage of pro- “It’s going to be a game “A few of the things cation would focus on jects lined up to occupy changer, I reckon,” he said. we’ve been doing have delivery platforms. his interest. “It can deliver data really been startups. Artificial intelligence Mr Jones is involved out at up to 10 gigabytes “If you can get a startup and virtual reality were in an array of businesses per second, over five working and working two opportunities, he outside Navitas, the kilometres.” well, through that you’re said. -based education Such technology could adding value.” “It allows you to deliver services provider with work in a complementary Hoperidge chief invest- (education) anywhere in a $1.8 billion market fashion with the National ment officer Jon Biesse the world; to have virtual Broadband Network, serves as Mr Jones’ eyes classrooms where kids SEARCHENGINE given that model’s current in a number of companies can interact as if they ...your key to WA business reliance on copper wiring where Hoperidge has a were in a classroom or a ROD JONES – MAJOR INVESTMENTS from node to home. stake, such as Merredin tute,” Mr Jones said. “Fibre goes to the node, Energy, where he is chair Navitas has an eye on Navitas Tertiary education provider with operations across the world, listed on the ASX in 2004 as IBT Education; Jones holds 12.6 per cent (this would be) distribu- (see investments in table). these developments via Hoperidge Capital Jones family fund manager tion from the node,” Mr Geospatial imaging the Navitas Ventures arm Jones said. business Spookfish, sup- of the business, which Spookfish ASX-listed geospatial imaging business; Hoperidge holds 8.2 per cent “The reality is fibre is plement provider Welleco builds and invests in edu- very expensive, and if you and utility Perth Energy cation innovations. Updater ASX-listed technology play designed to make moving home easier; Hoperidge controls 4.9 per cent can go to nodes and you are among other invest- Hoperidge Formed by Hoperidge Capital to build the company’s infrastructure can distribute out at rea- ments in the Hoperidge Succession Engineering projects sonable speeds, it’s going portfolio. All that doesn’t mean Perth Energy Power generator and retailer in the South West Interconnected System (SWIS); third biggest retailer in that market. Hoperidge holds 15 per cent to have some real value Business News under- Mr Jones, who turned Owns two peaking generators operating in SWIS, Hoperidge holds 53 going forward.” stands the stake in 70 in November, won’t Merredin Energy per cent That idea of bring- Navitas accounts for maintain a close involve- Colinear Networks Producing a new type of dish for signal delivery from the node to end- users; Hoperidge holds 8 per cent ing benefits to society about half of Mr Jones’s ment in Navitas after his through his family office, total portfolio, while planned retirement as Welleco Elle Macpherson’s supplement provider, Hoperidge a substantial shareholder Hoperidge Capital, is technology businesses chief executive in March Melchor Hoperidge owns 65 per cent of this construction play important to Mr Jones, are about half of the 2018. with Hoperidge’s invest- remainder. The move was flagged capitalisation and about ments partly focused on A third of the non-Navi- in October this year. 80,000 current students. areas where he could add tas part of the portfolio is Mr Jones said he would The one that gets him value to the world. in property, with a spread stay on as managing most excited is Califor- One example was across commercial, retail director until June 2018, nia-based Collinear. Updater, the ASX-listed and industrial invest- and then planned to take “That’s a partnership technology business that ments around the country. a seat on the board as a with Lockheed Martin aims to simplify coordi- Technology will also be director, perhaps with a that a few of us are nation of the many tasks shaping education, which couple of months’ break. involved in,” Mr Jones told involved in moving house. Mr Jones said was on par He said the board Business News. “There’s a lot of other with healthcare at the top had undertaken a very

6 | businessnews.com.au LOOKING FORWARD: Rod Jones says he would go nuts if he retired. Photo: Attila Csaszar thorough process to find Mr Jones said he was “The students we take from a “major road bump” forward,” Mr Jones said. a successor, with chief passionate about educa- in haven’t quite got direct in his life three decades ago, The second lesson was financial officer David tion because it was a way entry. when he lost everything. that Mr Jones said he Buckingham, who was to assist people achieve “What you’re doing is Aged 40, a business he always looked at risks previously chief execu- their goals. providing them a pro- had signed on as a guaran- and downsides first when tive of iiNet, to take the “I really feel good about gram to take them from tor for more than a decade analysing an opportunity. role. it,” he said. where they’ve come from prior went under, leaving “The biggest mistake “Dave and I work very “There’s a few hundred to where they want to be.” him with a few pieces of too many people make is well together,” Mr Jones thousand students who furniture, clothes, a car, in the evaluation of risk; said. probably wouldn’t have Journey and his job. they always look at the “I think he’s got the got through into univer- In the Navitas board- “You will always make upside of an opportu- right attributes to take sity without us having room, overlooking a slice mistakes, don’t continue nity, and they never put this company to the next provided that opportu- of St Georges Terrace, Mr to focus on the mistakes; enough effort looking at level.” nity to them. Jones said he learned a lot your focus has got to be the downside,” he said.

businessnews.com.au | 7 Wealth C r eato rs

SEARCHENGINE ASX HOLDINGS OF WA COMPANY DIRECTORS AND INVESTORS ...your key to WA business See more online – www.businessnews.com.au/directors-shareholdings

Total Total Total Total Director Companies value value Change Change % Director Companies value value % Rank 2017 ($m) 2016 Rank 2017 ($m) 2016

1 Andrew Forrest 4,880.0 6,488.8 -24.8 12 Anthony Billis 99.3 88.4 12.3

Fortescue Metals Group 4,861.6 Tribune Resources 62.5

Vimy Resources 7.4 Rand Mining 36.8

Poseidon Nickel 5.6 13 Ron Sayers Ausdrill 94.7 45.7 107.3

Admedus 3.9 14 Allan Buckler Altura Mining 77.9 - Impact Minerals 1.3 15 Neil Biddle Pilbara Minerals 64.2 19.6 227.7 Centennial Mining 0.3 16 Bill Beament Northern Star Resources 61.8 39.4 56.8 2 Kerry Stokes 3,014.4 1,945.3 55.0 17 John Rothwell Austal 56.9 60.8 -6.4 Seven Group Holdings 2,966.5 18 Paul Dalgleish RCR Tomlinson 53.3 - Capilano Honey 32 19 William Hames Cedar Woods Properties 51.9 48.8 6.3 BC Iron 15.9 20 Peter Cook Metals X, Westgold Resources 50.9 27.7 83.7 3 Chong Soon Kong* United Overseas Australia 615.7 - 21 Gavin Caudle Sumatra Copper & Gold, 48.6 - 4 Mark Creasy 530.6 503.0 5.5 Finders Resources 22 Frank Tomasi Southern Cross Electrical 48.3 32.0 50.8 Independence Group 405.2 Engineering 23 Robert Branchi Automotive Holdings Group 48.2 53.6 -10.1 S2 Resources 12.8 24 David Watson CTI Logistics 47.9 24.3 97.1 Legend Mining 8.1 25 Robert Brown Cedar Woods Properties 44.4 38.7 14.7 Azure Minerals 63.3 Marmota Energy 0.3 26 Peter Newton Metals X, Westgold Resources 42.0 - Brad & Mark Myanmar Metals 6.2 27 Miocevich VEEM 40.8 - Vietnam Industrial Orion Minerals 0.4 28 Henry Lam Investments 39.5 - Coziron 34.3 29 Graeme Rowley Fortescue Metals Group 38.6 44.4 -13.1 5 Chris Ellison 402.1 331.5 21.3 30 Michael Caratti Lycopodium 37.7 25.9 45.5

Mineral Resources 397.8 31 Gary Johnson Lepidico 37.6 -

Yellow Brick Road 4.3 32 Rob Velletri Monadelphous Group 37.4 23.2 61.4

6 Rod Jones 234.7 239.7 -2.1 33 Ian Gandel Alkane Resources 37.4 40.1 -6.8

Navitas 229.2 34 Ross Norgard Nearmap, Brockman Mining 36.7 36.0 1.9 Spookfish 5.5 Odyssey Energy, Equatorial Resources, Paringa Resources, 7 Peter Larsen Navitas 119 129.4 -8.0 Cradle Resources, Berkely Energia, 35 Ian Middlemas Salt Lake Potash, Prairie Mining, 35.0 27.2 28.7 8 Tony Lennon Peet 144 88.1 63.5 Syntonic Wireless, Piedmont Lithium, Sovereign Metals 9 Josef El-Raghy 133.8 119.0 12.4 36 Peter Van Der Made BrainChip Holdings 34.7 - Centamin 129.8 37 James Graham Wesfarmers 33.6 - AIC Resources 4.0 38 Malcolm Watkins Australian Finance Group 33.1 - 10 Michael Fotios 125.4 96.1 30.5 39 Karl Simich Sandfire Resources 31.7 30.2 4.9 Genesis Minerals 0.8 Wesfarmers, Woodside 40 Richard Goyder Petroleum 31.2 33.5 -6.9 Galaxy Resources 72.8 41 Ian Trahar Seafarms Group 30.4 32.5 -6.5 Pegasus Metals 0.6 42 Ken Chee 8I Holdings 29.3 - Eastern Goldfields 45.2 43 Kevin Matthews Australian Finance Group 28.3 - Redbank Copper 2.8 44 Chris Morris Smart Parking 28 - Oklo Resources 1.8 45 David Reed Neometals 27.9 - Horseshoe Metals 1.5 46 Antonluigi Gozzi LiveHire 26.9 - 11 Barry Patterson 107.1 108.1 -1.0 47 Paul Mantell Altura Mining 26.2 - Dacian Gold 15.1 48 Michael Haywood LiveHire 25.8 - Sonic Healthcare 81.9 49 John Davidson Carnegie Clean Energy 25.6 - GR Engineering 10.1 50 John Chan Finbar 25.2 -

* Malaysian resident Source: BNiQ, Morningstar.

8 | businessnews.com.au Wealth Creators 53 results from our index of 92,996 articles, 9,160 companies and 31,203 people. Mark my words podcast 01 Dec 2017 by Mark Beyer, Mark Pownall The state’s wealth creators. ...

Business spreads the tentacles of transition 30 Nov 2017 by Mark Pownall Like the 1980s, we have wealth creators picking trends and diversifying for their core business. ... difference from the 1980s is these entrepreneurs have real wealth behind them, not a sea of debt and ... the mining boom, or investors who made their wealth from resources and want to find alternatives to ...

Wealth is worth celebrating 26 Oct 2015 by Editorial In the interim, many others involved in FMG have been on our wealth creators’ list and numerous other ... has. Many of the companies mentioned had their founders in our inaugural wealth creators’ list in 2007. ... capital to pursue growth, then things are, in real terms, going backwards. Certainly wealth cannot be ...

Beament, Creasy hit wealth sweet spot 26 Oct 2015 by Mark Beyer shares in listed companies worth more than $10 million each, according to the updated BNiQ Wealth ... Creators list. How they got there tells a tale about changing business fortunes in the state. For starters, ... wealth – represented by known listed share holdings – has also fallen, by about 25 per cent, to $5.7 ...

Property, tech entrepreneurs feature on young rich list 30 Oct 2015 by Mark Beyer Beament also made the list. Mr Beament was ranked number 15 on Business News ’s recently published Wealth ... Creators list of directors holdings, a position which is compared solely on the value of shares in listed ... Mike Cannon-Brookes and Scott Farquhar, who have a combined wealth of an estimated $2.3 billion. ...

Big trends among biggest employers 24 Aug 2015 by Matt Mckenzie Sector that’s the real wealth creator.” Coles’ competitor, Woolworths, too, has put on staff, up by about ...

CEO Survey Results- the year ahead 13 Jan 2015 by Staff Reporters The current generation of wealth creators can leave for future generations. David Hobbs, Greyhounds WA ... offer opportunities to be explored. And the increasing wealth across SE Asia means our wine and food ... which we haven’t properly taken advantage of. We need to share our wealth with all parts of the ...

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