{"id":815729,"date":"2025-03-07T08:53:53","date_gmt":"2025-03-07T06:53:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=815729"},"modified":"2025-03-07T08:53:57","modified_gmt":"2025-03-07T06:53:57","slug":"bad-news-for-one-of-billionaire-motsepes-companies","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/815729\/bad-news-for-one-of-billionaire-motsepes-companies\/","title":{"rendered":"Bad news for one of billionaire Motsepe&#8217;s companies"},"content":{"rendered":"\n<p>African Rainbow Minerals (ARM), whose founder and Executive Chairman is Patrice Motsepe, has seen a significant drop in headline earnings.<\/p>\n\n\n\n<p>Motsepe is one of South Africa&#8217;s richest men, with a net worth of $3 billion (roughly R54 billion), making him the fourth wealthiest man in the country. <\/p>\n\n\n\n<p>On top of his shareholding in ARM, he also owns African Rainbow Capital, Mamelodi Sundowns, Ubuntu-Botho Investments and more. <\/p>\n\n\n\n<p>Motsepe founded ARM in 2004 through the merger of ARMgold (created by Motsepe in the 1990s), Avmin, and Harmony Gold. <\/p>\n\n\n\n<p>The group is a diversified mining company that mines several minerals, such as iron ore, platinum group metals (PGMs), manganese ore, copper and more.<\/p>\n\n\n\n<p>It also has an investment in gold via its shares of Harmony Gold, where Motsepe also serves as chairman. <\/p>\n\n\n\n<p>As chairman and founder, Motsepe owns roughly 40% of ARM, giving him a substantial say in how the company is run. His stake in ARM is worth roughly R13.2 billion.<\/p>\n\n\n\n<p>However, the group saw its headline earnings for the six months ended 31 December 2024 decrease by 49% to R1.5 million or R7.75 per share.<\/p>\n\n\n\n<p>ARM Ferrous headline earnings dropped by 33% to R1,881 million, driven by a decrease in the headline earnings of the iron ore division but slightly offset by the headline earnings from the manganese division.<\/p>\n\n\n\n<p>The group said that iron ore headline earnings were lower due to a lower average realised US dollar export prices, a stronger rand\/US dollar exchange rate and lower sales volumes. <\/p>\n\n\n\n<p>Iron ore headline earnings were lower due to lower average realised US dollar export prices, a stronger rand\/US dollar exchange rate and lower sales volumes. <\/p>\n\n\n\n<p>Manganese headline earnings were also higher due to higher average realised US dollar manganese ore price, which was partially offset by lower export sales volumes and a stronger rand\/US dollar exchange rate.<\/p>\n\n\n\n<p>ARM Platinum reported a headline loss of R689 million (1H F2024: R282 million loss), mainly due to higher operational losses at Bokoni. <\/p>\n\n\n\n<p>The group thus cut its interim dividend by 25% to R4.50 per share (1H F2024: R6.00 per share). The group&#8217;s net cash also dropped to R6 073 million. (30 June 2024: R7,197 million)<\/p>\n\n\n\n<p>However, basic earnings per share were R1,394 million or R7.11 per share, marking an increase of 15%, as it included the following attributable impairments: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An impairment of property, plant and equipment at Beeshoek of R96 million after tax<\/li>\n\n\n\n<li>An impairment of Assmang&#8217;s investment in Sakura Ferroalloys of R36 million with no tax effect<\/li>\n\n\n\n<li>An impairment of property, plant and equipment at Cato Ridge Works of R4 million after tax.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/03\/image-20.png\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"974\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/03\/image-20.png\" alt=\"\" class=\"wp-image-815749\" style=\"width:720px;height:auto\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/03\/image-20.png 720w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/03\/image-20-222x300.png 222w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/a><figcaption class=\"wp-element-caption\">(Source: ARM)<\/figcaption><\/figure><\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>African Rainbow Minerals has cut its interim dividend due to a drop in headline earnings. <\/p>\n","protected":false},"author":95,"featured_media":719404,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[3236,21940,21850],"class_list":["post-815729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-arm","tag-armgold","tag-harmony-gold"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/815729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=815729"}],"version-history":[{"count":15,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/815729\/revisions"}],"predecessor-version":[{"id":815756,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/815729\/revisions\/815756"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/719404"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=815729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=815729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=815729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}