Billionaire Batista Talking With Wealth Funds on Gold Stake
By Francisco Marcelino and Juan Pablo Spinetto
February 28, 2012 9:26 AM EST
(Updates with Batista comment in fourth paragraph.)
Feb. 15 (Bloomberg) -- Brazilian billionaire Eike Batista, whose investments range from iron ore to coal, said he’s in talks with sovereign wealth funds and other potential “strategic partners” to sell a stake in his AUX gold unit.
Batista’s EBX Group Co. holding company is also still weighing a listing of AUX, which last year paid C$1.08 billion ($1.08 billion) to acquire Ventana Gold Corp., Batista told reporters in Sao Paulo. He didn’t give further details.
Colombia’s gold deposits have attracted investment from Batista and AngloGold Ashanti Ltd, the third largest producer of the metal, after record prices and improved security following a government crackdown on drug-funded rebels. Gold has climbed for eleven consecutive years, reaching an all-time high of $1,923.70 on Sept. 6 as investors look for bullion to protect their wealth against economic uncertainty and financial turmoil.
“Sovereign wealth funds are interested in investing in real assets” such us gold, Batista, 55, told reporters today before a conference organized by Banco BTG Pactual SA.
Batista said last year he would list AUX in Bogota, London and Sao Paulo as soon as May 2012. AUX is worth $5 billion, he said in October, and has 7.2 million ounces of gold reserves after the acquisition of Vancouver-based Ventana in March 2011. AUX’s La Bodega mine, located 400 kilometers (248 miles) northeast of Bogota, also has copper and silver deposits.
Gold Production
AUX expects to start gold production in between two-and-a- half and three years, Batista said Oct. 6.