Business

Billionaire Patrice Motsepe’s crown jewel making R14 million a day in South Africa

Malcolm Libera

 ·4 Sep 2026

Patrice Motsepe’s African Rainbow Minerals (ARM) generated more than R14 million in profit every day during its 2026 financial year, following a strong recovery in its platinum group metals business.

ARM, chaired by its founder, billionaire businessman Motsepe, reported total profit for the year of R5.165 billion for the financial year ended 30 June 2026.

Spread across the 365 days of the financial year, this works out to an average profit of R14.15 million per day.

The mining group’s latest financial results showed a significant improvement in profitability, with a recovery in platinum group metals (PGM) prices helping offset weaker performances in its ferrous metals and coal operations.

Headline earnings increased by 19% to R3.201 billion, or R16.60 per share, compared with R2.695 billion, or R13.79 per share, in the previous financial year.

ARM said the improvement was primarily driven by a substantial increase in average US dollar PGM basket prices compared with those achieved in the 2025 financial year.

Basic earnings showed an even sharper improvement, rising from R330 million in F2025 to R3.998 billion in F2026.

The increase was supported by several one-off gains, including a R241 million profit from the disposal of ARM’s joint-venture interest in Sakura and a R462 million remeasurement gain on its pre-existing 50% interest in Nkomati Mine.

The results also benefited from the non-recurrence of a R2.209 billion impairment loss on property, plant and equipment at Bokoni Mine, which had significantly reduced the group’s earnings in the previous year.

ARM Platinum was the standout performer, with headline earnings improving by more than 200% to R1.345 billion. This compared with a headline loss of R1.288 billion in F2025.

Two Rivers Mine contributed headline earnings of R1.202 billion, up from R202 million, while Modikwa Mine generated R683 million after reporting a R43 million loss in the previous year.

The end of king coal

These gains helped offset a R579 million headline loss at Bokoni Mine. However, this was a significant improvement on the R1.392 billion loss recorded by Bokoni in F2025.

Not all of ARM’s operations performed as strongly. Headline earnings at ARM Ferrous fell by 42% to R2.028 billion, largely due to a stronger rand, lower iron ore sales from Beeshoek Mine and weaker manganese export prices.

Beeshoek Mine was placed on care and maintenance in October 2025, while the average realised rand strengthened by 7% against the US dollar, reducing the benefit of dollar-denominated commodity prices.

ARM Coal also moved into the red, reporting a headline loss of R428 million compared with headline earnings of R47 million in the previous year. The division was affected by weaker realised coal prices and exchange rate pressures.

Despite these challenges, ARM strengthened its financial position considerably. The group’s net cash increased by R3.562 billion to R10.171 billion at the end of June 2026.

“This gives ARM the flexibility to pursue value-enhancing growth prospects,” the company said.

Shareholders were also rewarded with a higher dividend. “A final dividend of R7.00 per share is declared,” ARM said. This brings the total dividend for F2026 to R12.00 per share, compared with R10.50 in the previous year.

The group is also positioning itself for future growth through the development of Bokoni and the planned restart of Nkomati Mine.

ARM said the Bokoni development plan “materially de-risks execution” and positions the mine below the 50th percentile of the global PGM cost curve.

Meanwhile, the restart of Nkomati’s open-pit nickel operations could re-establish South Africa’s only primary nickel producer.

The group also recorded zero fatalities during the year, compared with three deaths in F2025. ARM described this as a significant milestone, noting that its last fatality-free year was in 2017.

“With a portfolio of quality, long-life assets and world-class ore bodies, ARM is well-positioned to navigate the uncertain commodity and economic environment,” the company said.