Africa’s first Black billionaire Patrice Motsepe has witnessed a multimillion-dollar decline in his wealth, with the value of his stake in African Rainbow Minerals (ARM) plummeting amid a broader trend of investors divesting from mining companies worldwide.
According to data tracked by Billionaires.Africa, the market value of Motsepe’s stake in ARM has dropped by R2.66 billion ($137.65 million) since the start of the year due to a significant decline in the shares of the mining group on the Johannesburg Stock Exchange (JSE).
ARM’s shares slump 14.8 percent, pushing market cap below $2 billion
African Rainbow Minerals (ARM), a prominent South African mining and minerals company, operates in both Malaysia and South Africa. It mines various minerals, including iron, manganese, chrome, nickel, and coal.
Motsepe holds a 45.9 percent stake in ARM, equivalent to 89,905,401 shares valued at $791.8 million. This robust ownership cements his role as the company’s founder and largest shareholder.
Since the start of the year, ARM shares on the JSE have slumped by 14.8 percent, declining from R200 ($10.34) on Jan. 1 to R170.38 ($8.81). This caused ARM’s market capitalization to fall below $2 billion, leading to a decline in the market value of Motsepe’s stake.
Motsepe’s fortune dips $137.7 million as ARM’s shares slump
As a result of the double-digit percent slump in the mining group’s share price, the market value of the stake held by Motsepe has slumped by R2.67 billion ($137.7 million) since the start of the year, falling from R17.98 billion ($929.46 million) on Jan. 1 to R15.32 billion ($791.82 million) at the time of reporting.
Despite this financial setback, the well-known businessman, known for his charitable contributions, maintains his status as Southern Africa’s wealthiest Black individual with a net worth of $2.6 billion. He continues to rank among the top individual investors on the JSE.