Alexey Mordashov, Russian Billionaire goes for an aureate knockout punch

Nov 1, 2020 | Billionaire News

Alexey Mordashov, Russian Billionaire goes for an aureate knockout punch

Early Life and Education

Alexey Mordashov is the president of Severstal. He has the highest share in Severstal. He also happens to have stakes in the metal, energy, and mining industries.

Alexey Mordashov is the son of parents who were both steel mills workers. He once said that his family used coupons. Of which only 400g of sausages is permitted each 30 days.

He graduated with a baccalaureate from the Leningrad Engineering-Economical Institute. He later got a Master’s (MBA) from a University in Newcastle called Northumbria University in 2001. Mordashov talks about the value his undergraduate studies played. He searched for employment and career by joining the same steel plant where his parents had worked.

After graduating as an economist in 1988, he then joined Cherepovetskiy Metallurgical Plant. By 1992 he became finance director, shortly before the company was privatized. Mordashov formed two investment funds. It was at the moment the company’s elderly director instructed him to get shares. This was to uphold the company from being overtaken by an outsider. And by buying up workers’ shares, Mordashov built an important and essential stake in the factory.

In 2007, Mordashov bought shares in TUI Travel. TUI Travel under the control of Michael Frenzel in 2008 expanded into Eastern Europe and Russia. As of 2009, it expanded to China and India, and then sold-out its shipping gains, Hapag-Lloyd AG, in March 2009 to the Albert Ballin Consortium. All this happened via his S-Group Travel. He used this means to multiply his stake as the biggest single shareholder.

He became the fifth-largest shareholder of Rossiya bank owning 6%, in 2013. He resigned as the Chief Executive Officer in 2015 and assigned the former Chief Operating Officer, Vadim Larin, in his place. Mordashov would be appointed as chairman. The changes were confirmed by Severstal.

Russia vs China

Russia and China contend for the administration of an Australian gold excavation Industry. Africa has its best asset, intensified with the Russian billionaire, Alexey Mordashov, on the verge of losing. Through the control of Severstal, Mordashov was estimated to worth over $19.4 billion. He got this by involving in the steel and energy business which multiplied his offer for (Cardinal) Fundamental Resources to 65 cents a share. A 35% increase on his previous offer of 48 cents.

Mardashov’s recent proposal via his gold mining company, Nordgold, is 14.5 cents greater than the proposal submitted by China’s Shandong Gold. This competition between the two parties began in the third month of this year. This was at the time an ounce of gold was selling at $1,450.

Since then, gold has risen towards $2,000 per ounce (the latest price is $1958 per ounce). The Russian and Chinese rivals have traded bids to the point where Nordgold is now offering roughly double its opening price of 33.5 cents.

Shandong has the right to match Nordgold

The recent action by Mordashov should force a re-reasoning of its suggestion to shareholders. There is a tendency China’s Shandong’s proposal will be accepted. This is done for the maintenance of Cardinal, which has been locked into a position through an implementation agreement that gives the Chinese company the right to match Nordgold.

Whosoever becomes the winner of the Cardinal control gets rewarded. Gold sedimentation in Ghana, one of Africa’s largest gold manufacturing countries would be given as a promise.

The Namdini deposit is close to several of Nordgold’s existing African operations. This deposit is one of the world’s best-undeveloped gold projects, containing a reserve of 5.1 million ounces.

The Monetary part of the job is, even more satisfying with the assumed improvement cost of over $390 million expected to be paid back before a year. Appreciations to the extreme gold price, and low production cost of about $895 per ounce. Mordashov is not the only wealthy man with an increasing thirst for gold. A month ago, a report that Warren Buffet, an entrepreneur not known for his stake in the metal, had a wager in Barrick Gold, which is one of the world’s biggest.

Paulson John, the Director of Hedge Fund, has also been building his gold position by multiplying his interest in the U.S. focused Midas Gold.