Gold slump cuts $700 million from South African billionaire Patrice Motsepe’s fortune

Just weeks after gold traded above $5,400 per ounce, the metal has slipped below $4,500, setting off a sharp pullback in mining stocks and cutting into the wealth of some of Africa’s richest investors. Among those affected is South African billionaire Patrice Motsepe, whose fortune has dropped by about $700 million, according to Forbes estimates, as investors moved out of gold-linked assets.

The decline has unfolded quickly. Since Jan. 26, Motsepe’s net worth has fallen from $4.4 billion to $3.7 billion — a $700 million drop in roughly 55 days. The setback comes at a time of transition for the mining tycoon, who stepped down in February from his executive role at African Rainbow Minerals, the company he founded more than two decades ago, following changes to governance rules on the Johannesburg Stock Exchange.

The slide in his wealth reflects losses in the market value of his mining holdings. Motsepe holds an indirect 11.8 percent stake in Harmony Gold, South Africa’s largest gold producer, a position dating back to the company’s 2003 merger with Avmin. He also owns 43.66 percent of African Rainbow Minerals. Over the past 55 days, Harmony Gold shares have dropped by more than 40 percent on the JSE, while African Rainbow Minerals has declined by more than 10 percent.

Mining stocks slide on gold drop

The broader selloff in mining stocks tracks the recent weakness in gold prices. Bullion has fallen below $4,500 per ounce from more than $5,400 on Jan. 28, as rising energy costs and renewed geopolitical tensions weighed on investor sentiment. Reports that the Pentagon is sending three warships and thousands of Marines to the Middle East have added to concerns about inflation and the outlook for interest rates. Traders are now pricing in a roughly 50 percent chance that the U.S. Federal Reserve could raise rates by October.

Gold, often seen as a safe store of value, has come under pressure in recent weeks as U.S. Treasury yields climbed and the dollar strengthened. The metal has declined steadily since last month’s escalation involving U.S. and Israeli strikes on Iran, with some investors selling positions to cover losses in other markets. Central banks, including the Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan, have held rates steady but signaled they are prepared to act if inflation remains elevated.

Motsepe set for $27 million dividend payout

Even with the recent drop in his net worth, Motsepe is still set for a significant cash payout. African Rainbow Minerals plans to pay an interim dividend on April 13, which will deliver about R455.66 million ($27.1 million) to him based on his stake. The payment follows a solid first-half performance from the company.

For the six months ended Dec. 31, 2025, the board approved a gross interim dividend of R5 per share, up from R4.5 per share a year earlier. In total, ARM will distribute R1.044 billion ($62.1 million) to shareholders before dividend withholding tax. Motsepe, the company’s founder and largest shareholder, owns 91,133,393 shares, equal to a 43.66 percent stake, giving him the biggest share of the payout.

The dividend will be paid directly into shareholders’ accounts on the scheduled date, adding to the regular income Motsepe has earned from the company over the years, even as swings in commodity prices continue to shape the value of his fortune.