Financial services updates
Sign up for myFT Daily Digest to get the financial services news first.
Egyptian billionaire Naguib Sawiris has set up a $ 1.4 billion fund to hold an investment in gold mines and pursue new opportunities in this sector. He says this is a need for integration.
The Luxembourg-based Lamancha fund will be a “high-value, long-term limited fund” dedicated to gold mining and open to new investors, Sawillis said. The fund will also invest in the battery metal needed for electric vehicles.
The world’s largest gold miners, Barrick Gold and Newmont Corporation, have surged in recent years through acquisitions, but there are still many gold producers that are not large enough to appeal to mainstream investors.
Sawiris said the fund will invest in some of these junior minors to facilitate further integration through mergers and acquisitions. We also aim to improve and enhance the environmental, social and governance performance of the sector.
“The transition to a fund structure and the welcome of new investors is timely when there are opportunities in the gold mining sector that are fragmented and need further integration,” he said.
Launched after a 20% drop in gold miner stocks this year, as measured by the NYSE Arca Gold Bugs Index, as investors focused on assets related to “refre trading” and a global recovery from Covid-19 Will be done. These include commodities such as copper and other industrial metals, which benefit from the government’s trillions of dollars in recovery packages.
The price of gold has fallen 7% since the beginning of the year Today, Monday’s trading is just above $ 1,800 a troy ounce, down from last year’s record $ 2,000 ounces as vaccination mitigated the economic damage caused by the Covid-19 pandemic.
The fund holds shares in Sawiris in Endeavor Mining. West Africa’s largest gold producer, Evolution Mining, Golden Star, Altus Strategies as well. It also includes a $ 100 million investment from an undesignated “strategic partner”.
The fund aims to buy “significant stocks” of junior mining companies with “strong management and geological potential to implement a three- to five-year value creation strategy.” Said.
It also aims to improve the operational efficiency of mining operations and help businesses grow through exploration and new mines.
Sawillis, who made a fortune in telecommunications, is one of the largest investors in the gold mining sector. Ramancha..
Launched in 2017, La Mancha has accumulated a 19% stake in Endeavor Mining. Since he acquired the stake, Endeavor has expanded with the acquisition of two West African gold producers, the semaphore and the Terranga Gold.
It It is listed Listed on the London Stock Exchange in June, it has a market capitalization of $ 5.7 billion. This means that we may win entries in the FTSE 100 Index in the next quarterly review in September.
The fund is supported by an advisory board of mining experts chaired by Sawiris.
Egyptian billionaire Sawiris sets up $1.4bn gold mining vehicle Source link Egyptian billionaire Sawiris sets up $1.4bn gold mining vehicle