Naguib Sawiris, the second-richest man in Egypt and a prominent figure in the gold mining industry, has experienced a decline in his net worth as gold prices remain subdued below $2,000 an ounce.
The Egyptian billionaire, who holds a significant stake in gold mining ventures worldwide through La Mancha Resources, has recently seen his wealth slump by $110 million.
According to the latest data from the Bloomberg Billionaires Index, Sawiris’ net worth has decreased by $110 million over the past nine days, dropping from $5.92 billion on May 8 to $5.81 billion on May 17.
This downward trend follows a period of growth earlier this year when Sawiris witnessed his net worth surge by $813 million, fueled by the increased valuation of his 70-percent stake in La Mancha Resources.
The recent decline in Sawiris’ net worth can be attributed to the gold price downturn, which has fallen below the $2,000 threshold. On May 17, gold prices lost more than 1 percent, affecting the valuation of companies with significant gold assets, including La Mancha Resources.
Market analysts suggest that this drop in prices results from investor concerns regarding the strength of the U.S. dollar in light of ongoing U.S. debt ceiling negotiations and the direction of Federal Reserve monetary policy.
Despite the recent slump, Naguib Sawiris’ net worth remains up by $707 million this year, solidifying his position as the second-richest individual in Egypt and one of Africa’s wealthiest billionaires.
Sawiris predominantly holds his wealth in cash and closely held assets, primarily accumulated through the sale of his stake in Russian telecom company Vimpelcom for approximately $4.1 billion between 2011 and 2012.
La Mancha Resources, through which Sawiris maintains his gold investments, holds stakes in prominent publicly traded gold miners such as Endeavor Mining, Evolution Mining, and Golden Star Resources.
In an interview with Bloomberg News in April 2018, he proudly declared himself one of the largest gold-mining investors worldwide.
As gold prices continue to fluctuate and impact the fortunes of prominent figures like Sawiris, the billionaire’s ability to navigate the market and sustain his wealth will be closely watched by industry analysts and investors alike.