South African tycoon Noluthando Gosa suffers $6.3-million loss from stake in steelmaker

Omokolade Ajayi -

Noluthando Gosa, a South African businesswoman and executive has experienced a significant decrease in her net worth due to the sustained decline in the market value of her stake in ArcelorMittal South Africa (ArcelorMittal SA).

Since the start of the year, the market value of her stake in the Gauteng-based steelmaker has plunged by R94.94 million ($6.32 million) to R235.18 million ($12.8 million) as of April 11, from R329.12 million ($19.12 million) on Jan. 1.

The slump in the market value of Noluthando Gosa’s stake can be attributed to the sharp 28.5-percent fall in ArcelorMittal SA’s shares on the Johannesburg Stock Exchange (JSE), reflecting investors’ reaction to the company’s financial performance at the end of its 2022 fiscal year.

ArcelorMittal SA’s share price on the JSE has experienced a significant decline of over 28 percent since the start of this year, dropping from R4.8 ($0.279) to R3.43 ($0.187) at the time of this report.

This has resulted in the company’s market capitalization falling below $250 million, leading to substantial financial losses for shareholders, including Noluthando Gosa, who holds a 6.15-percent stake in the company.

As a subsidiary of Luxembourgian multinational steel manufacturer ArcelorMittal, ArcelorMittal South Africa has an extensive steel operation in the country, encompassing flat and long steel products, coke, and chemicals.

With an impressive annual production capacity of 7 million tonnes of liquid steel, ArcelorMittal SA has established itself as one of the foremost steel producers on the African continent.

However, the company faced significant challenges during the fiscal year 2022, as reflected in its recently released financial statement.

The Gauteng-based steelmaker’s profits declined by 60.24 percent, from R6.62 billion ($360.6 million) in 2021 to R2.63 billion ($143.25 million) in 2022, despite a sustained increase in revenue from R39.71 billion ($2.17 billion) to R40.77 billion ($2.22 billion).