South African Billionaire Patrice Motsepe Set to Pocket $28.8 Million from ARM Deal

Patrice Motsepe, Africa’s first Black billionaire and a prominent figure in South Africa’s mining industry, is poised to receive an interim dividend of R539.43 million ($28.8 million) from African Rainbow Minerals (ARM), a leading mining and minerals company headquartered in South Africa.

ARM’s retained earnings of R40.89 billion ($2.17 billion) as of December 31, 2023 will result in a $28.8-million interim dividend placed into Patrice Motsepe’s bank account on Monday, April 8, 2024, together with other shareholders’ interim dividends.

ARM is a key player in South Africa’s mining sector, with significant holdings in projects ranging from iron, coal, copper, gold, platinum, and other precious metals.

Forbes estimates Motsepe’s net worth at $2.5 billion. His 45.9 percent share in ARM contributes significantly to his fortune, making him one of the continent’s wealthiest men.

ARM’s interim results show a 43 percent drop in headline earnings, from R5.17 billion ($275.5 million) in the first half of 2023 to R2.96 billion ($157.8 million) in 2024. This loss was related to a considerable drop in platinum group metals (PGM) commodity prices, which cut income from R9.37 billion ($499.34 million) to R6.6 billion ($351.7 million).

Despite the earnings loss, ARM’s retained earnings fell slightly, from R41.08 billion ($2.19 billion) as of December 31, 2022 to R40.89 billion ($2.17 billion) as of December 31, 2023. Meanwhile, the company’s total assets increased from R60.4 billion ($3.22 billion) to R64.4 billion ($3.43 billion) over the same time period.

The board of directors has approved an interim dividend of R6 ($0.32) per share, consistent with the company’s dividend policy. This represents a change from previous year’s R14 ($0.75) per share. The total payout is R1.348 billion ($71.9 million), which will be distributed to shareholders on Monday, April 8, 2024, as of the end of business on Friday, April 5, 2024.

Motsepe, who owns a substantial interest in ARM, stands to receive R539.43 million ($28.8 million) from this interim dividend. This large payment strengthens his position as one of Africa’s wealthiest individuals.

Aliko Dangote, Africa’s richest man, expects to receive a $284.5 million dividend from his stake in Dangote Cement Plc, the continent’s top cement maker.

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