Africa's First Black Billionaire Patrice Motsepe Loses 100 Million As Arm Struggles

Patrice Motsepe, Africas first Black billionaire, has lost 100 million this week after shares of African Rainbow Minerals Ltd. ARM, the South African mining company he controls, took a sharp hit on the Johannesburg Stock Exchange JSE.

Motsepes fortune, which had been stable in recent months, fell from 2.8 billion to 2.7 billion, according to Forbes . The decline follows a steep 16 percent drop in ARMs share price over the past five days, with the stock sliding from R162 8.8 to R135 7.33.

ARMs stock nosedived after the company issued a trading statement warning that its headline earnings for the first half of its 2025 fiscal year could drop by as much as 55 percent . The mining group cited weaker iron ore prices, lower sales volumes, and rising costs as key reasons for the expected decline.

For the six months ending Dec. 31, 2024, ARM expects headline earnings to fall to between R1.33 billion 72 million and R1.625 billion 88 million, down from R2.955 billion 160 million a year ago. That translates to headline earnings per share HEPS of R6.78 0.366 to R8.29 0.448, compared to R15.07 0.815 in the same period last year.

The warning adds to what has already been a tough period for ARM. The company reported its lowest annual profit in seven years in 2024 , and investors appear to be bracing for more challenges ahead. The group is set to release its full first-half financial results on Mar. 7, 2025.