How much you would have if you invested R1,000 in Patrice Motsepes ‘golden child’ when it was founded
African Rainbow Minerals (ARM) is one of South Africa’s biggest mining groups, and a R1,000 investment in the company in 2004 could have earned a person more than four times that initial amount.
The company was officially founded in May 2004 as the result of a merger between ARMGold and Harmony Gold.
While this is officially when ARM started, the company’s founder, Patrice Motsepe, established his first company in the mining industry in 1994, Future Mining.
This company laid the foundation for Motsepe to found ARMGold, which was listed on the Johannesburg Stock Exchange in 2002.
Finally, this company was merged with Harmony Gold to form ARM, which was listed on the JSE on 30 June 2004.
Since its establishment, the company has grown into a major player in South Africa’s mining industry, with a market capitalisation of approximately R31.5 billion.
This success is partly due to the company’s exposure to several commodities, including gold, copper, and Platinum Group Metals (PGMs).
The company’s success helped propel Motsepe to billionaire status, making him South Africa’s first black dollar billionaire.
Today, Motsepe has an estimated net worth of $3.4 billion (R56.2 billion), according to Forbes, making him the 1,201st-richest person in the world.
Forbes also noted on its website that Motsepe was the first black African on its billionaires list, joining in 2008.
This wealth was largely created through Motsepe’s stake in ARM, which he led from its foundation until early 2026.
In February 2026, he stepped down as the company’s executive chairman while remaining its board chairman.
The decision was due to new simplification rules from the JSE, which would not allow him to serve in both positions at the same time.
“I look forward to continue contributing to the global competitiveness of ARM in my new capacity as non-executive chairman,” he said at the time.
“I have undertaken my new role as non-executive chairman to ensure compliance with the Listings Requirements.”
The crown jewel
When it was first listed on the JSE on 30 June 2004, ARM had a share price of 3,750 cents, which has grown considerably in the last 22 years.
When markets closed on 5 November, the company was trading at 15,158 cents per share, a 304% increase in value since its founding.
Investing R1,000 in the company at its start in 2004 would have purchased approximately 26.7 shares.
At the 5 November 2026 closing ARM share price of 15,158 cents, this investment would be worth roughly R4,042.
The amount represents a return on investment of over 304%, which could be even higher if a person sold their R1,000 stake at the right time.
In its 22-year history, the South African mining giant reached its highest share price of 30,523 cents on 13 January 2023.
Selling an initial R1,000 investment at this time would yield approximately R8,139: a 714% return on investment in 19 years.
While this is the highest theoretical return a person could make after investing in the company at its founding, selling the R1,000 stake in 2008 would also yield a high return.
On 23 May 2008, ARM shares traded at 29,700 cents per share, meaning a R1,000 investment in May 2004 would be worth R7,920.
While this is a lower return on investment than if a person sold in 2023, it would represent a 692% return on investment in only four years.
Following this high peak in early 2008, ARM’s share price plummeted as global markets struggled through the financial crisis.
African Rainbow Minerals historic share price
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