KEY POINTS
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Naguib Sawiris’ net worth fell below $10 billion after a $170 million loss.
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Falling gold prices have pressured Naguib Sawiris’ net worth.
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His mining assets, including La Mancha holdings, saw valuation declines.
According to figures compiled by the Bloomberg Billionaires Index, Egyptian billionaire Naguib Sawiris lost about $170 million in less than a month, causing his fortune to fall below the $10 billion barrier.
Gold slump drags Naguib Sawiris’ net worth
Sawiris’ net worth dropped from $10 billion on October 7 to $9.83 billion, according to the Bloomberg index, which uses market data and business filings to measure the fortunes of the 500 richest people in the world. The decline comes after gold prices recently fell, which has affected how much his sizable mining holdings is worth.
After hitting a record high of around $4,350 per ounce earlier this year, gold fell below $4,000 per ounce on Tuesday. Due to the metal’s inverse association with rates, investors’ expectations of additional U.S. interest rate reduction were moderated, which caused a downturn.
The late businessman Onsi Sawiris’s eldest son, Sawiris, received much of his entrepreneurial spirit from his father, who established the Orascom Group, one of Egypt’s most prosperous family-owned businesses. By branching out into mining and then telecommunications, Naguib established his own reputation and became one of Africa’s most well-known capitalists.
In 2010, he made his breakthrough by selling important telecom businesses, such as Wind Telecomunicazioni in Italy and a majority position in Orascom Telecom Holding, for $1.5 billion in cash and a 20% stake in Vimpelcom. He made $300 million from the acquisition, and by 2012, he had added an additional $4 billion to his fortune through other deals.
Mining slowdown deepens Naguib Sawiris’ net worth decline
Through his investment company, La Mancha Resources, Sawiris has devoted a significant portion of his income in recent years to gold mining. The business owns significant shares in Evolution Mining, an Australian corporation, and Endeavour Mining, one of Africa’s top producers of gold. Those holdings have lost value as gold prices have cooled. In October, his private mining holdings were valued at $8 billion, but now they are only worth about $7.95 billion. According to Billionaires Africa, His shares in Evolution Mining dropped from $450 million to $411 million, while his interest in Endeavour Mining decreased from $1.4 billion to $1.34 billion.
Despite the recent decline, Sawiris is still one of the richest people in Africa and has a big impact on the media, mining, and hospitality industries. Despite its volatility, his long-term gold wager remains the cornerstone of his global investing portfolio.
