Patrice Motsepe’s ARM stake value jumps $212.5 million thanks to success on JSE

Yusuf Abdulfatai -

African Rainbow Minerals (ARM), a South Africa-based diversified mining corporation, saw a double-digit increase in its share price last year on the Johannesburg Stock Exchange, resulting in millions of dollars in gains for its shareholders, including billionaire businessman Patrice Motsepe.

According to data from Billionaires.Africa, Motsepe, who is the president of the Confederation of African Football and the richest Black person in Southern Africa, saw a R5.54-billion ($212.5 million) increase in the market value of his 39.7-percent stake in ARM.

Despite posting a single-digit decline in profit at the end of its 2022 fiscal year, ARM’s shares rose by more than 27 percent. This increase in share price resulted in a R5.54-billion ($212.5 million) increase in the market value of Motsepe’s stake in the company, bringing it from R20.3 billion ($1.32 billion) to R25.84 billion ($1.53 billion).

ARM, which was founded by Motsepe in 1997 as South Africa’s first Black-owned mining company, has strategic positions in iron, coal, copper, gold, platinum, and other precious metal mining projects.

The company’s profit at the end of its 2022 fiscal year dropped by more than seven percent, from R15.47 billion ($895 million) in 2021 to R14.36 billion ($830.5 million). The decline can be attributed to a fall in iron ore prices, which went from over $200 per tonne at the start of ARM’s 2022 fiscal year to $110 per tonne by the year’s end.

Despite the decline in profit, ARM’s double-digit increase in share price shows a strong performance for the company. This is particularly impressive given the challenges faced by the mining industry in recent years, including volatile commodity prices and increasing pressure to prioritize sustainability.

Motsepe, who owns 89,092,411 shares of ARM, has played a seminal role in the company’s success. As the founder and a major shareholder, his leadership and vision have helped to guide ARM towards growth and stability.

In 2022, the leading billionaire received $103 million in final dividends from his stake in ARM. The final payout, along with the $69.6-million interim dividend that he earned this year, brings his total dividend earnings from ARM this year to $173 million.