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Patrice Motsepe incurred a $900 million loss this year


Patrice Motsepe is a South African mining magnate, businessman, and philanthropist. He is the founder and executive chairman of African Rainbow Minerals, which has interests in gold, ferrous metals, base metals, and platinum. He sits on several company boards, including being the non-executive chairman of Harmony Gold, the world's 12th-largest gold mining company, and the deputy chairman of Sanlam.

The South African business tycoon has, indeed, experienced a significant $900 million reduction in his wealth since the commencement of 2023. This is according to the Forbes 2023 list of Africa's billionaires, which was released in February 2023. Motsepe's net worth is now estimated at $3.1 billion, down from $4 billion in 2022.

There are a few factors that contributed to Motsepe's loss in 2023. One is the decline in the value of mining stocks. Motsepe's African Rainbow Minerals (ARM) is one of the largest mining companies in Africa, and its share price has fallen by more than 20% in the past year. It has declined from R288 ($15.22) on January 1 to R170.1 ($8.99) at the time of drafting this report, causing a significant slump in the market value of Motsepe’s stake in the mining conglomerate, which constitutes a significant portion of his wealth. This is due to a number of factors, including the ongoing war in Ukraine, which has led to higher energy prices and disrupted global supply chains.

Moreover, the South African Rand has fallen by more than 10% against the US dollar in the past year, which has made Motsepe's assets, which are denominated in rand, less valuable. And lastly, the global economy, which is expected to slow down in 2023, could lead to a decrease in demand for mining products. This would further impact the value of Motsepe's mining assets.

Despite these challenges, Motsepe remains one of the wealthiest people in Africa. He is also a prominent philanthropist and businessman, and he is involved in a number of initiatives to promote economic development and political stability on the continent.

It is important to note that Motsepe's $900 million loss is only on paper. His net worth is still estimated at $3.1 billion, which is a significant amount of money. However, the loss does highlight the risks associated with investing in mining and other cyclical industries.

The foremost billionaire in South Africa is poised to collect a final dividend of R1.088 billion ($56 million) from his 40.37% ownership in ARM. This dividend is scheduled to be distributed on October 9, 2023. However, it represents a significant decrease compared to the R1.78 billion ($103 million) in dividends he received the previous year, a decline attributed to ARM’s reported 7% decline in profits.

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