Rinehart Riches

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Georgina H. Rinehart, is more commonly known as Gina Rinehart. Does that name ring any bells? Well it better, because Gine Rinehart is set to become the richest person in the world.

Rinehart is currently Australias richest person, who is worth USD9 billion, which also makes her the second-richest woman in the Asia-Pacific region, behind Indias steel-and-power matriarch, Savitri Jindal.

Achievement

Her fortune quadrupled last year thanks to high iron ore prices and rising exports to China. Gina Rineharts father died in 1992, leaving her a mining empire in shambles and setting off a 14-year legal brawl with her stepmother over the wreckage of the estate.

Rina overcame all this by spending the last two decades putting her fathers mining empire back together, making sure that all her current wealth is self-made.

From her base in Perth, Rinehart has gained control over many tracts of Australias mineral-rich outback. She has built a business with a marvellous cash flow approaching nearly $2 billion a year, along with plans to develop more iron ore mines and to add coal to her stock of mineral exports to Asia.

Predictions

If Citigroups predictions are proven to be correcct, Rinehart will soon be the richest person in the world, eclipsing the fortunes of well-known billionaires likeCarlos Slim,Bill GatesandMark Zuckerberg. According to Tim Treadgolds findings, Hancock Prospecting, the company Rinehart inherited from her father, is the worlds fifth largest mining outfit. His argument is as follows:

If Rinehart was a company listed on the ASX, and valued using the same 11-times price-to-earnings ratio as her partner, Rio Tinto, she would be worth USD30 billion, putting her in the top 10 of the Forbes rich list headed by Mexican telephone magnate, Carlos Slim, at USD74 billion, withMicrosoft founder, Bill Gates, second at $US56 billion.

Rinehart, however, has three more mines on the way, and potentially more in the exploration phase.

If Rineharts three new projects mentioned by Citigroup match the performance of Hope Downs, and if mineral prices stay high (two big assumptions) it is possible to see Rineharts portfolio of coal and iron ore production spinning off annual profits approaching $10 billion.

If those best guesses prove to be correct, Rinehart is heading for a personal net worth valuation of more than $100 billion, using the Rio Tinto 11-times PE multiple.

As much as wed like to believe Rinehart as the richest person, these forecasts are merely based on assumptions, estimates and predictions.

Nevertheless, Georgina Rinehart is one to watch for, if she is now Australias richest person then it will come as no surprise if she takes over the Worlds Richest Person title.

Also, Even at a USD30 billion net worth valuation, based on profit forecasts for RinehartsHope Downs mine, shed be the worlds richest woman, a title currently held by Walmart heiressChristy Walton.

And whereas Walton inherited her wealth, Rinehart is almost entirely self-made.

 

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