Andrew Forrest's private investment company, Wyloo, has executed a significant $200 million acquisition, securing Newmont's remaining stake in Greatland Resources at a substantial discount to market value. This strategic move coincides with gold prices reaching unprecedented heights, creating a favourable environment for Australian gold producers.
A Lucrative Deal for the Forrest Family
Wyloo exercised an option to purchase Newmont's residual 9.9 per cent holding in Greatland Resources, a prominent gold-copper producer. The transaction was completed at a price of $3 per share, a figure dramatically below Greatland's closing share price of $13.57 on the day of the announcement.
This price differential represents a windfall gain of approximately $705 million for the Forrest family's investment vehicle. Following this acquisition, Wyloo's total stake in Greatland has increased to 18.1 per cent, solidifying its position as the company's largest shareholder.
Background of the Transaction
The option agreement originated from a previous, larger deal between Newmont and Greatland. In that arrangement, Newmont sold its Telfer mine and a 70 per cent interest in the nearby Havieron deposit in the Pilbara region to Greatland for $715 million. As part of that sale, Newmont received a 20 per cent stake in Greatland and subsequently granted Wyloo an option to acquire its remaining shareholding, which was a condition for Wyloo's approval of the Telfer and Havieron transaction.
Wyloo's Chief Executive, Luca Giacovazzi, expressed strong confidence in Greatland's future. "We are proud to continue deepening our partnership with Greatland as its largest shareholder," Giacovazzi stated. "We believe in the company's disciplined approach, the quality of its assets and the capability of its team."
He further highlighted Greatland's potential, noting the company is "emerging as a leading multi-asset gold and copper producer with the potential to become one of the most significant mining companies on the ASX." Giacovazzi also pointed to the "substantial value yet to be unlocked" from the Havieron and Telfer assets.
Gold's Record Run Fuels Market Optimism
Wyloo's decision to exercise its option comes as the price of gold, a traditional safe-haven asset, continues its remarkable ascent. Fears of geopolitical instability, including concerns about a potential US invasion of Greenland, have driven the precious metal to surpass $7,000 per ounce, setting a fresh all-time high.
This buoyant gold price provided a tailwind for several ASX-listed gold producers who reported their quarterly results on the same day as the Wyloo announcement.
Evolution Mining and Westgold Shine
Evolution Mining saw its share price surge by 9.5 per cent following its quarterly update. The company delivered positive news by reducing its cost guidance for the 2026 financial year by 6 per cent and significantly boosting its cash balance. Evolution added $187 million to its coffers, ending the period with a robust $967 million in cash.
Notably, investors chose to overlook a production setback at Evolution's Ernest Henry mine in Queensland, which was impacted by flooding from 30 centimetres of rainfall within a 24-hour period.
Westgold Resources was another standout performer, with its shares climbing 9.6 per cent. Under the leadership of CEO Wayne Bramwell, the company announced record quarterly gold production of 111,148 ounces, a result that comfortably exceeded analyst forecasts.
Westgold also reported a record underlying cash build of $365 million. After accounting for various payments, including stamp duty, debt servicing, and dividends, the company added a net $182 million to its reserves. This leaves Westgold in a strong financial position with $654 million in cash and bullion, and notably, no debt or hedging arrangements.
The combination of Wyloo's strategic consolidation in Greatland and the powerful rally in gold prices underscores a period of significant activity and optimism within the Australian gold sector, with major players positioning themselves to capitalise on the favourable market conditions.
