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ArcelorMittal South Africa (ArcelorMittal SA), one of Africa’s largest steel producers, has experienced a substantial decline in its share price, resulting in significant losses for shareholders, including Noluthando Gosa, a South African businesswoman, and executive.
The steelmaker’s lackluster financial performance in 2022 led to a staggering 59-percent drop in its shares on the Johannesburg Stock Exchange, causing a slump of R6.17 billion ($421.97 million) in market capitalization.
From January 2, 2022, to June 21, 2023, ArcelorMittal SA’s shares plummeted from R9.18 ($0.575) to R3.76 ($0.204) per share. This decline pushed the company down to the 146th position among valuable stocks on the Johannesburg Stock Exchange.
Consequently, Gosa, a leading businesswoman and corporate executive, experienced a significant decrease in the market value of her stake, amounting to R371.63 million ($25.42 million) since Jan. 2, 2022.
According to data tracked by Billionaires.Africa, Gosa’s stake in ArcelorMittal SA is currently valued at R257.81 million ($14.02 million), compared to its worth of R629.44 million ($39.44 million) on January 2, 2022, when the company’s shares traded at R9.18 ($0.575).
ArcelorMittal South Africa, a subsidiary of the Luxembourg-based multinational steel manufacturing firm ArcelorMittal, boasts an annual production capacity of 7 million metric tonnes of liquid steel and is headquartered in Gauteng.
Despite a slight increase in revenue from R39.71 billion ($2.17 billion) to R40.77 billion ($2.22 billion) in 2022, the steelmaker experienced a sharp decline of 60.24 percent in profits, dropping from R6.62 billion ($360.6 million) in 2021 to R2.63 billion ($143.25 million) in 2022.
Gosa, a longtime leader of prestigious institutions and a non-executive independent director at ArcelorMittal South Africa, derives the majority of her fortune from a well-diversified investment portfolio that includes a 6.15-percent stake in the Gauteng-based steelmaker.
In addition to her directorship at the steelmaker, Gosa also serves on the boards of Mobile Telephone Networks Holdings, the Institute of Directors, and the Businesswomen’s Association.
Apart from the downward trajectory of the company’s shares, which significantly impacted the market value of Gosa’s stake, the devaluation of the South African rand has also played a pivotal role in the depreciation of her investment in the Gauteng-based steelmaker.
