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South African businesswoman Noluthando Gosa has experienced a substantial decrease in her investment in ArcelorMittal South Africa, a subsidiary of the Luxembourg-based multinational steel manufacturer ArcelorMittal, over the past month.
According to data tracked by Billionaires.Africa, Noluthando Gosa one of South Africa’s richest investors and corporate executives, has seen the market value of her 6.15-percent stake in ArcelorMittal South Africa fall by R76.11 million ($4.29 million) in the past 31 days, from R349.7 million ($19.73 million) on January 9 to R273.58 million ($15.44 million).
The fall in the market value of her stake can be attributed to the recent drop in the company’s share price on the Johannesburg Stock Exchange (JSE) from R5.1 ($0.287) per share on Jan. 9, 31 days ago to R3.99 ($0.225) per share at the time of writing.
The 21-percent drop in the company’s share price can be attributed to investors’ reaction to the Gauteng-based steelmaker’s trading update, which stated that its annual profit would fall by up to 65 percent due to a decline in steel prices at a time when raw material prices, such as coal, had risen rapidly.
ArcelorMittal South Africa said in the trading update that it expects headline earnings per share — the primary profit measure for South African companies — to be between R2.15 ($0.1245) and R2.45 ($0.142) per share for the fiscal year ended Dec. 31, down from R6.15 ($0.348) per share previously.
The group added that, in addition to the decline in steel prices and the surge in operating expenses, which both had a significant impact on its earnings during the period under review, its financial performance was also impacted by poor rail service, a two-week wage strike, and South Africa’s worst-ever power outages, which impacted steel production.
