Back to the complete issue
Monday, 26 July 2021

Sawiris’ La Mancha transforms into mining fund

Sawiris-run La Mancha is transforming itself into a USD 1.4 bn mining fund that includes all of La Mancha’s current gold mining assets as well as a USD 100 mn contribution from an unnamed strategic investor, the firm said in a press release (pdf). The announcement came as La Mancha announced a USD 1.4 bn first close, with Chairman Naguib Sawiris saying “transitioning to a fund structure and welcoming new investors is timely when we are seeing [potential targets] in a gold mining sector which is fragmented and needs further consolidation.”

What assets has La Mancha contributed? Stakes in Endeavour Mining, Golden Star and Altus Strategies, all listed mining players.

What’s the investment strategy going forward? La Mancha may look at stakes in smaller mining outfits with “strong managerial and geological potential to implement a 3-to-5-year value creation strategy.” Gold and other precious metals remain at the core of the company’s strategy, but it will “also also have the flexibility to invest in EV battery metals.”

Local tie-in, beyond Naguib’s name: Sawiris-backed Altus Strategies subsidiary Akh Gold landed four gold exploration licenses for nine blocks in the Eastern Desert earlier this year in a gold tender by the Mineral Resources Authority, following amendments to the Mineral Resources Act that Sawiris said were “more favorable and more realistic and would attract foreign investments to the sector.” La Mancha acquired a 35% stake in Altus in February 2020.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.