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Mxolisi Mgojo, a South African businessman, has recently seen the market value of his interest in Exxaro Resources, one of South Africa’s largest diversified resource groups, surge above $5.7 million.
Exxaro Resources is a South African-based diversified resources group with holdings in coal, TiO2, ferrous metals and energy. The firm maintains active operations in South Africa, Europe, the Democratic Republic of the Congo and the United States.
Mxolisi Mgojo, Exxaro’s CEO since April 2016, owns a beneficial 0.17-percent ownership in the leading diversified resources firm, totaling 412,591 ordinary shares.
The increase in the market value of his holding beyond $5.7 million may be linked to an increase in the resource group’s shares, as investors on the local bourse maintained a purchasing interest in expectation of greater performance in 2022.
The recent spike in energy costs as a result of the Russia-Ukraine conflict fueled the recent purchasing activity.
As of press time on March 14, shares in the group were trading at R208.2 ($13.82) on the Johannesburg Stock Exchange, 2.83-percent lower than their opening price on the local bourse this morning.
At the present pricing, Mgojo’s 0.17-percent ownership is worth R85.9 million ($5.71 million), while the group’s market capitalization is worth R74.8 billion ($4.95 billion).
Since the start of the year, the market value of his shareholding has climbed from R63.07 million ($4.19 million) on Jan. 1 to R85.9 million ($5.71 million) at the time of writing this article. This translates to a gain of R22.83 million ($1.52 million) for the multimillionaire businessman.
The million-dollar gain in the market value of his investment since 2022 began may be attributed to a 36.2-percent increase in its share price from R152.87 ($10.15) at the start of the year to R208.2 ($13.82) as of the time of writing.
Exxaro Resources reported a 56-percent rise in earnings to R11.57 billion ($765.3 million) at the end of 2021, up from R7.42 billion ($490.8 million) in 2020.
The rise in headline earnings may be attributed to a 47-percent boost in the group’s earnings before interest, taxes, depreciation and amortization (EBITDA) due to strong iron ore export prices and pricing premia.
