Gold slump wipes $300 million from CAF President Patrice Motsepe’s wealth

Patrice Motsepe, Africa’s first Black billionaire and the president of the Confederation of African Football (CAF), has seen a sharp reversal in his fortune as a sudden pullback in gold and other precious metals weighed heavily on his mining holdings. Over the past week, the sell-off erased $300 million from his net worth, underscoring how quickly swings in commodity markets can filter through to the net worth of even the most established mining investors.

Data tracked by Forbes show that Motsepe’s net worth fell from $4.4 billion on Jan. 26 to $4.1 billion at the time of drafting this report. The drop came just six days after precious metals touched record prices, before a wave of profit-taking and broader market sell-offs reversed the rally. Despite the setback, Motsepe remains among the world’s top 1,000 richest people, a position built over decades through disciplined investment in South Africa’s mining sector.

Motsepe mining holdings drag net worth

The immediate pressure on his wealth has come from a double-digit slide in the share prices of African Rainbow Minerals and Harmony Gold, two companies that anchor his mining interests. Motsepe owns 45.9 percent of African Rainbow Minerals, a diversified miner with exposure to iron ore, coal, copper, gold and platinum group metals, and holds an indirect 11.8 percent stake in Harmony Gold, South Africa’s largest gold producer. According to market data tracked by Shore.Africa, shares of African Rainbow Minerals and Harmony Gold on the Johannesburg Stock Exchange (JSE) have fallen by 12.5 percent and 14 percent, respectively.

Those declines have translated into a notable reduction in the market value of Motsepe’s stakes. His holding in African Rainbow Minerals has dropped from R24.58 billion, or $1.53 billion, to R20.38 billion, or $1.27 billion. His interest in Harmony Gold has eased from R29.43 billion, or $1.83 billion, to R28.28 billion, or $1.76 billion. Combined, the value of his mining interests has slipped from $3.36 billion on Jan. 26 to $3.03 billion at the time of drafting this report, accounting for the bulk of the recent decline in his personal wealth.

Gold slides on Fed shock, profit-taking

The slide in mining shares mirrors a broader retreat in the gold market. Prices fell more than 4 percent to below $4,700 per ounce on Monday, extending losses from the prior session when the metal suffered its steepest fall in more than a decade. The rout on Friday followed news that US President Donald Trump had nominated Kevin Warsh, seen by many investors as a more hawkish choice, to lead the Federal Reserve. That development rattled markets already on edge and prompted investors to lock in gains after a long run-up in prices.

Gold’s earlier surge had been driven by strong central bank buying and investor demand for hard assets as concerns grew over rising government debt and the stability of currencies and bonds. Heightened geopolitical and economic uncertainty, along with questions around the Federal Reserve’s independence, added to gold’s appeal as a store of value. Buying pressure was further intensified by speculative activity, including purchases by Chinese investors, which pushed prices higher before reversing sharply as profits were taken.