Africa’s first Black billionaire Patrice Motsepe to receive $56 million in dividends from ARM

Omokolade Ajayi -

Despite African Rainbow Minerals (ARM) falling short of investors’ expectations in its financial performance, South African billionaire Patrice Motsepe is set to receive substantial dividends from his stake in the diversified mining conglomerate.

According to data tracked by Billionaires.Africa, Patrice Motsepe, who made history in 2008 as the first Black African billionaire on Forbes’ list, is anticipated to pocket a final dividend of R1.088 billion ($56.5 million) from his 40.37 percent ownership in ARM.

This payout, scheduled for Oct. 9, 2023, represents a notable decrease from the R1.78 billion ($103 million) in dividends he received last year, when ARM reported a seven percent decline in profit.

African Rainbow Minerals (ARM), a prominent South African mining and minerals company with strategic interests in various mining projects spanning iron, coal, copper, gold, platinum, and other precious metals, has faced challenges leading to its disappointing financial performance.

Motsepe, who founded ARM in 1997 as South Africa’s first Black-owned mining firm, currently commands a 40.37 percent share in the company, translating to 90,696,906 shares valued at more than $1.1 billion, contributing significantly to his total fortune of $2.4 billion.

ARM reported a double-digit percent decline in profits in its latest financial results, citing rail logistics issues, reduced production, and softer commodity prices as the primary drivers behind the disappointing performance. This decline follows the company’s previous projections of a decrease in headline earnings for the 2023 fiscal year.

According to the recently published financial statements, ARM’s profit plummeted by over 35 percent, falling from R14.36 billion ($750.8 million) at the conclusion of the 2022 fiscal year to R9.32 billion ($487.3 million) at the close of the 2023 fiscal year.

The dip in earnings led ARM’s board of directors, under the leadership of Motsepe, who holds a significant 39.7-percent stake in the company, to declare a final dividend of R12 ($0.63) per share. This represents a substantial reduction compared to the R20 ($1.046) per share final dividend paid to shareholders in the previous fiscal year.