Naguib Sawiris establishes a fund to invest in gold with assets of 1.4 billion

12:22 PM

Monday 26 July 2021

Books – Mustafa Eid:

La Mancha Holding, a subsidiary of businessman Naguib Sawiris, announced the creation of the La Mancha Fund, a long-term investment fund based in Luxembourg that specializes mainly in the field of gold mining, according to a statement from the company today, Monday.

The firm said La Mancha Capital Legal Consultants is the fund’s advisory office.

She added that the first closure of the fund was completed with the receipt of all the gold mining assets of La Mancha, in addition to an investment of $100 million from a strategic partner who will invest alongside the Sawiris family, the largest shareholder in the company.

The company stated that the fund, as of today, manages assets of more than 1.4 billion dollars, and is studying many new opportunities, and the fund will be available to other investors at a later time.

“The move to create an investment fund is the corollary of what we have been doing since 2015 when we sold our operating assets to Evolution and Endeavor in exchange for equity shares,” said Naguib Sawiris, Chairman of La Mancha.

Sawiris added, “The shift to establishing a fund and opening the way for new investors comes at a very appropriate time when we expect many opportunities in the gold mining sector, which is still fragmented and needs more mergers.”

“The fund will be supported by an advisory committee that I will chair and will include a number of well-known figures in the mining sector, many of whom have a long history of working with and advising La Mancha,” he added.

The company stated that the fund’s primary investment objective is to create investment resources for the gold and precious metals mining sector, and it will also have the flexibility to invest in electric car batteries.

The fund will invest primarily in a specific portfolio focused on long-term listed stocks, but may consider investing a smaller portion of its assets in private equity, according to the statement.

The company said that in line with the proven investment strategy in La Mancha, the fund will seek to acquire large stakes in small and start-up mineral resource companies with strong management and geological capabilities that will enable them to implement a value creation strategy within 3 to 5 years that will:

Enhancing and improving operational efficiency by simplifying the cost base, enhancing management capabilities when needed, improving mine life plans, increasing plant efficiency, and enhancing environmental, social and governance action plans.

Assist in unlocking organic growth and value creation opportunities by developing long-term exploration plans, developing assets, establishing new mines, and increasing factory productivity.

Enhance and support accumulated external growth opportunities through acquisitions, regional mergers, and exploration of mergers with larger players.

The company stated that one of the fund’s objectives is also that its management seeks to improve environmental, social and governance standards within its portfolio companies during the investment period, because it believes that there is a strong correlation in the mining sector between profitability and the development of environmental, social and governance performance.

She added that the fund includes more than 20 full-time talent, including geologists, mining engineers and investment experts who have significant operational experience in the sector, many of whom have been part of La Mancha’s growth story for many years, and the team is based in the United Kingdom and Luxembourg.

La Mancha Holdings is a privately owned investment company that focuses primarily on opportunities in the precious metals mining sector across multiple geographies.

La Mancha is a long-term investor seeking to support its subsidiaries by providing capital and expertise to finance expansion plans, and has a strong track record in the mining sector since 2012, according to the statement.

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