Andrew Forrest's stake in Fortescue Metals Group soared to more than $5 billion today after shares in the iron ore developer hit a record $50 as investors rushed into the commodities sector and helped push the Australian sharemarket to an all-time high.
Iron ore stocks enjoyed solid buying with Gindalbie Metals jumping 5.7 per cent, or 9 cents, to $1.65, Atlas Iron gained 3.4 per cent, or 6 cents, to $1.84, Aurox Resources surged 17.5 per cent, or 17 cents, to $1.14 while Fortescue Metals climbed 2.4 per cent, or $1.18, to $49.68 after earlier hitting a record high of $50.
Fortescue's share surge sent the value of Mr Forrest's stock to $5.06 bn and also provided a tidy gain for his charity, The Australian Children's Trust. Mr Forrest gifted the charity one million shares a week ago when the stock was trading at $42.60. The Trust's shares have effectivly jumped $7.4 million in just a week.
The iron ore run came as the S&P/ASX 200 index surged 56.7 points, or 0.9 per cent, to 6538.1 after hitting a record high 6550.7.
But it wasn't all one way traffic for the iron ore players, which have been buoyed by market speculation that producers could attract ore price increases of about 50 per cent.
Shares in Midwest Corporation slumped 4 per cent, or 13 cents, to $3.16 as its stoush with the State government over its rights to build infrastructure weighed on the stock. Also sending investors running was news that the government may reject a request by Midwest to extend its permit to haul its ore by road from its stockpile to the port at Gerladton.
Meanwhile, shares in Murchison Metals which is competing with Midwest for the right to build infrastructure in the region fell 4 cents, or 0.8 per cent, to $5.05.
