Patrice Motsepe, the South African billionaire and founder of African Rainbow Minerals Ltd. (ARM), saw the value of his controlling stake in the mining company drop to R12.99 billion ($781 million) following a 27% decline in ARM’s share price this year. Motsepe holds approximately 90 million shares, which represents 43.1% of the company’s total shares outstanding.
As of Friday’s closing, ARM shares traded at R144.25 on the Johannesburg Stock Exchange, bringing the total value of Motsepe’s holdings to approximately $780.85 million, calculated at an exchange rate of R16.63 to the dollar. He manages these shares through African Rainbow Minerals & Exploration Investments (Pty) Ltd. (ARMI), the largest shareholder in ARM, which is entirely owned by Ubuntu-Ubuntu Commercial Enterprises. Shares of ARMI are held in trusts for Motsepe and his family, with part of the benefits going to the Motsepe Foundation.
Despite the decline in the stock price, Motsepe continues to receive significant dividends from the company. On October 12, ARM paid a final dividend of R7 per share, totaling around R630 million ($37.9 million) based on his shareholding. The total dividend for the year ending June 30 was R12 per share, or roughly R1.08 billion ($65 million).
Financial Overview of ARM
For the financial year ending June 30, ARM reported a headline earnings increase of 19%, amounting to R3.2 billion ($192.5 million). Revenue for that period rose by 25% to R16.3 billion ($981.5 million), driven primarily by the strong performance of platinum group metals, which experienced price increases of over 50%. However, the ferrous division of ARM, which includes iron ore and manganese operations, reported a 42% decline in earnings due to a strong rand and decreasing prices for manganese.
In parallel, ARM is facing challenges with its Beeshoek iron ore mine in the Northern Cape, which recently stopped mining operations as it was deemed “no longer economically feasible.” The closure resulted in job losses for about 622 permanent workers and significant financial impacts, including R124 million in retrenchment costs.
Additionally, ARM is investing nearly R16 billion ($914 million) to bring back into production two closed mines, including Bokoni, a platinum mine near Atok. This project aims to enhance production capacity starting in the first half of the 2028 financial year.
In more recent developments, ARM is engaged in legal disputes with Assore Ltd. regarding operational control of their joint venture, Assmang. ARM has countered claims from Assore, asserting it has the legal right to manage the venture’s operations.
Patrice Motsepe, who served as executive chairman of ARM for over two decades, stepped down from his executive role in February 2025 and currently holds the position of non-executive chairman. Outside his business endeavors, he leads various initiatives in sports and philanthropy, having committed to significant charitable contributions through the Giving Pledge.
As of early September 2023, Motsepe’s net worth was estimated at $3.6 billion, with the bulk derived from his stake in ARM.
