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Financial Times

28th November 2018

Egyptian billionaire Sawiris to look at Barrick’s African gold mines after Randgold merger

Egyptian billionaire Naguib Sawiris has outlined plans to build a new African-focused gold company and said he is keen to buy any gold mines on the continent put up for sale by Canada’s Barrick Gold following its merger with Randgold Resources. Speaking at the Mines and Money conference in London, Mr Sawiris said he wanted to use Ghana-based gold miner Golden Star, in which he bought a 30 per cent stake in August, as a vehicle to acquire underground gold mines, mainly in east Africa.

Mr Sawiris said he was looking for deposits that could produce between 150,000 to 250,000 ounces of gold a year for a minimum of ten years mine. He highlighted Sudan as an interesting opportunity. He also told reporters he had met Barrick Gold’s executive chairman John Thornton recently in a lift in New York, and had expressed his interest in buying some of the company’s African mines. “It makes sense for us,” he said, about acquiring any unwanted assets from Barrick,” said Mr Sawiris. “We can extend the mine life.” Mr Thornton has said Barrick will focus on only its largest and lowest cost gold and copper mines following the merger with London-listed Randgold, which was approved by shareholders last month.

Analysts have speculated that Barrick could sell Randgold’s Tongon, Massawa and Morila mines in Africa after the deal closes at the end of the year. “The whole mining industry needs consolidation,” Mr Sawiris added. “The two biggest decided to merge, what about the smaller ones? The two biggest is like a 70 year old guy marrying a 70 year-old woman. What we want is the youngsters to start moving. There is more sense and more urgency for smaller mining companies to come together than for the bigger ones.” Mr Sawiris also said he was keen to fill the void left by Randgold in the London market by listing his west African gold producer Endeavour in the UK, or any future gold mines he acquires on the continent. While his La Mancha Group controls just 30 per cent stake of Endeavour, Mr Sawiris said he could be“very persuasive” when it came to convincing other shareholders of the merits of a London Stock Exchange listing.

Endeavour currently trades in Toronto. Mr Sawiris made his fortune in the telecoms industry but started his foray into international gold mining through a deal to acquire La Mancha in 2012.