The Rise and Fall of Eike Batista.

It is the desire of everyone to rise to a prominent height after experiencing some seasons of low life, unfortunately some people rise to this height and also fall back quickly after a brief experience of abundance. It is an example of someone who had this unfortunate experience that we will be discussing today, we will be talking about Eike Batista in today’s post his rise and fall and basic things that led to the sad event.

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Eike Batista before losing his wealth had a net worth of $35 Billion and he had a company called EBX groups, with this net worth this man was ranked as the 8th wealthiest man in the world and after two brief years of experiencing wealth and abundance, his company collapsed completely and not only did he lose his wealth he also lost his money as he started facing a jail term of 30 years imprisonment.

Having a background in the mining sector since his father was the president of a mining company in Brazil, it was easy for him to begin his journey in the mining world as well. Eike Batista was good at purchasing gold at cheap sources and he was able to quickly connect with people he could efficiently distribute and sell it to this made his rise quiet convenient.

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After making a profit of $6Billion from his exchange business, he started the EBX group where he was able to access untapped gold from the amazon region and sell, since he had the access to tap the gold himself he was able to make extra profit. He extended this mining business to other regions and he began to build gold mines in other regions, he also expanded his business to make deals in oil and gas, metal mining and others.

Extending the arms of the company to the direction of oil and gas also brought in more wealth for the company as the company purchased the newly discovered shore from the Brazil government, the price of oil was also on the rise and this made it a favourable condition that allowed Eike Batista become the wealthiest man in Brazil.

But by 2012, the price of gold began to decline and this was a major hit to the company who were into huge debt at the time, the oil sector which was also supposed to serve as a perfect substitute was not going so well after a revelation that the company who claimed to be producing 750,000 barrels of oil in a day were actually only producing 15,000 barrels of oil in a day. This huge discovery made the stock price of the company fall significantly low. This caused the company great loss and they were unable to pay back the interest on the loans they had piled up, the stock price of the company also fell completely to zero.

After being unable to clear his debt, the police invaded his home and seized every luxury item that he owned. Considering his debt, his net worth had fallen to $1.2 Billion, there was also an exposed scandal that had Elike’s name attached to it by 2018 he was sentenced to 30 years imprisonment.

Important points to note.

The fast rise of Elike Batista is a very remarkable one, he was skilled in the gold mining industry and was doing well there until he began to take on more debt and expanded to sectors he had no idea about simply because he wanted to become the wealthiest man. After this other sectors did not work and he resulted to corruption with the hope that it will revive his company and still help him maintain his wealth status but did not also work well but landed him into serious trouble instead.