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Tuesday, July 27, 2021

Egyptian billionaire #Sawiris sets up $1.4bn #Gold #Mining Fund

Sawiris looks to open up his La Mancha Gold Investment vehicle to outside investors.  The Luxembourg domiciled fund will hold his 19% stakes in Endeavour Mining (EDV), Australia's Evolution Mining (EVO), African Refractory Gold Miner Golden Star (GSS) and Altus Strategies (ALS), the London based Royalty & Prospect Generator.  The fund will include a cornerstone investment of $100 Million from a currently undisclosed "Strategic Partner".

Egyptian billionaire Sawiris sets up $1.4bn gold mining vehicle

Naguib Sawiris
Naguib Sawiris has been one of the biggest investors in the gold mining sector, through his investment vehicle also called La Mancha © Diego Levy/Bloomberg

Egyptian billionaire Naguib Sawiris has set up a $1.4bn fund to hold his gold mining investments and pursue new opportunities in the sector, which he says is need of consolidation.

The Luxembourg-based La Mancha Fund will be a "deep value, long-only fund" dedicated to gold mining and open to new investors, Sawiris said. The fund will also invest in battery metals needed for electric cars.

Sawiris said the fund would take stakes in some of these junior miners and encourage further consolidation through mergers and acquisitions. It will also seek to improve the environmental, social and governance performance of the sector and broaden its appeal.

...

The fund will hold Sawiris' stakes in Endeavour Mining, the largest gold producer in West Africa, as well as Evolution Mining, Golden Star, and Altus Strategies. It also includes a $100m investment from "a strategic partner", who was not named.

The fund will look to buy "significant stakes" in junior mining companies with "strong managerial and geological potential to implement a 3-to-5-year value creation strategy," it said.

It will also look to improve operational efficiency of mining operations and help companies expand through exploration and new mines. It will be supported by an advisory committee made up of mining professionals that will be chaired by Sawiris.

See the whole article on the FT here: https://www.ft.com/content/5cc8e9a5-3c2a-40a0-b795-e526dbb31104

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