Cape Town – South African billionaire Patrice Motsepe’s stake in African Rainbow Minerals (ARM) has fallen to approximately US$781 million after the Johannesburg-listed mining company’s shares declined 27% this year, highlighting the impact of market volatility and costly investment plans on his mining wealth.
According to Billionaires.Africa, Motsepe holds 90,021,061 ARM shares, representing 43.1% of the company’s 208.7 million issued shares. Based on Friday’s closing price of R144.25 per share, the holding was valued at R12.99 billion, or approximately US$780.85 million.
The decline represents a substantial reduction in the market value of Motsepe’s investment, although it does not necessarily mean he has sold shares or realised a financial loss.
Investor concerns
The shares have come under pressure as ARM commits substantial capital to revive and expand its mining operations. In July, Reuters reported that the company approved a R15.2 billion (US$927 million) phased expansion of its Bokoni platinum operations and a US$46 million investment to restart nickel mining at Nkomati.
The spending plans have raised investor concerns about the timing and cost of the projects. Bloomberg reported in July that ARM shares fell as much as 9.7% after the investments were announced.
Despite the market pressure, the company’s operating performance has shown improvement. Reuters reported in September that ARM’s annual headline earnings rose 19% to R3.201 billion for the year ended June 30, 2026, from R2.695 billion a year earlier, supported by platinum-group metal prices that increased by more than 50%.
ARM’s platinum division returned to profitability, generating R1.345 billion in headline earnings, while its coal division recorded a R428 million loss. The contrasting results underline the different pressures affecting the diversified miner’s operations.
Latest evaluation
The company expects the expanded Bokoni project to reach steady production in 2032, producing between 350,000 and 400,000 ounces of platinum-group metals annually. At Nkomati, ARM plans to resume nickel concentrate production under an offtake agreement with Swedish metals producer Boliden.
Motsepe’s shareholding is held through African Rainbow Minerals and Exploration Investments, which is ultimately owned by Ubuntu-Ubuntu Commercial Enterprises through a structure of trusts established for the benefit of Motsepe and his immediate family. Part of the benefits also supports the Motsepe Foundation.
The latest valuation illustrates how fluctuations in a listed company’s share price can affect the reported value of a major shareholder’s wealth, even as the underlying business continues to generate earnings and pursue expansion.
Follow African Insider on Facebook, X and Instagram
Picture: X / @_AfricanUnion
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
