Patrice Motsepe, Africa’s first Black billionaire and founder of African Rainbow Minerals (ARM), experienced a significant setback as his net worth plummeted by $200 million in the first week of August, erasing gains made in July.
According to Forbes, the U.S. business magazine that closely tracks the fortunes of the world’s ultra-high-net-worth individuals, Motsepe’s net worth dipped from $2.6 billion on Aug. 1 to $2.4 billion on Aug. 6.
The recent decline in Motsepe’s wealth comes on the heels of an impressive $200-million gain he achieved between July 12 and 26, during which his net worth surged from $2.4 billion to $2.6 billion, a record high for the billionaire. He maintained the $2.6-billion mark until July 31.
The decline in Motsepe’s net worth can be attributed to the recent downturn in the market value of his 39.7 percent stake in ARM, a groundbreaking Black-owned mining company with extensive assets in iron, coal, copper, gold, platinum, and other precious metals.
Motsepe, who made history in 2008 at the age of 46 as the first Black African billionaire to grace Forbes’ list, founded ARM in 1997. However, the share price of the Johannesburg-based mining group has recently fallen by 5.6 percent, dropping from R200.75 ($10.88) on July 31 to R189.5 ($10.27) at the time of reporting.
Recent reports indicate that ARM has experienced a loss of more than $1.1 billion in market value since the start of the year. This has led to the group’s market capitalization falling below the $2.5-billion mark, posing further difficulties for the esteemed mining conglomerate.
The decline in market capitalization for ARM and other top mining companies can be attributed to sustained selling pressure on the Johannesburg Stock Exchange.
The current market conditions have impacted ARM’s strategic positions in various mining projects involving iron, coal, copper, gold, platinum, and other precious metals, adversely affecting the company’s overall performance.
Motsepe’s net worth currently stands at $2.4 billion, erasing the gains he enjoyed in July and emphasizing the volatile nature of the global market, especially in the mining sector.
Analysts are closely monitoring the market developments and their potential implications for the fortunes of leading individuals like Motsepe.