South African billionaire Patrice Motsepe is set to receive a hefty R1.24 billion ($67.1 million) dividend payout from African Rainbow Minerals (ARM) following the company’s exceptional financial performance in the first half of the 2023 fiscal year.
ARM is a South African mining and minerals company with strategic positions in a variety of mining projects covering iron, coal, copper, gold, platinum, and other precious metals. Patrice Motsepe who founded ARM in 1997 owns a 39.7-percent stake in the diversified mining group.
His stake in the leading mining group is now worth more than $1.3 billion, accounting for the majority of his fortune.
The dividend which will be paid directly into Motsepe’s account from ARM’s retained earnings represents a significant portion of the dividend approved by the board of directors of the South Africa-based diversified mining group.
According to recently released interim results, ARM at the end of the first half of its 2023 fiscal year, reported a 40-percent increase in its profit from R3.69 billion ($203.1 million) in the first half of its 2022 fiscal year to R5.17 billion ($284 million).
The double-digit increase in the group’s earnings during the first six months of its 2023 fiscal year can be attributed to the surge in revenue from R7.7 billion ($423.8 million) to R9.37 billion ($515.7 million), thanks to higher coal and manganese prices in the global commodity market.
As a result of its financial performance, the board proposed a gross dividend of R14 ($0.77) per share for the six months that ended on Dec. 31, 2022.
Motsepe, based on his 39.7-percent stake in the group, is projected to receive a dividend of R1.24 billion ($67.1 million). As the largest shareholder, this payout represents a significant return on his investment in the company.