South African billionaire Patrice Motsepe set to receive nearly $40 million dividend from ARM

South African billionaire Patrice Motsepe is set to receive nearly $40 million in final dividends from his stake in African Rainbow Minerals Ltd. after the diversified mining group reported a stronger financial performance, helped by a recovery in platinum group metals prices that offset weaker contributions from its iron ore and coal businesses.

Motsepe, who stepped down as executive chairman in February 2026 and became non-executive chairman to comply with local listing requirements, owns a 43.66 percent stake in the company, equivalent to more than 91 million shares. His holding will earn him about R637 million ($39.9 million) when the final dividend is paid on Oct. 12, bringing his total dividend income from ARM for the 2026 financial year to R1.09 billion ($68.42 million).

ARM raises payout on stronger earnings

The payout follows the board’s approval of a final dividend of R7 ($0.43) per share, amounting to about R1.46 billion ($91.5 million). That compares with a final dividend of R6 ($0.37) per share paid a year earlier. The latest payout brings ARM’s total distribution for the financial year to R12 ($0.75) per share, up from R10.5 ($0.65) per share in 2025.

The higher dividend followed stronger earnings and sales that improved the group’s financial performance. ARM produces iron ore, manganese, chrome, platinum group metals, nickel and thermal coal, and holds an 11.73 percent stake in Harmony Gold Mining Co. The Johannesburg-based miner operates assets across South Africa through wholly owned operations and joint ventures spanning PGMs, ferrous metals and thermal coal.

Earnings surge on higher platinum prices

Headline earnings rose to R3.2 billion ($200.2 million), or R16.60 ($1.03) per share, from R2.7 billion ($169 million), or R13.79 ($0.86) per share, a year earlier. Sales increased 31 percent to R15.25 billion ($954 million) from R11.66 billion ($729.3 million), while the cost of sales fell to R10.85 billion ($679 million) from R11.85 billion ($742 million).

The improvement in revenue and costs helped ARM report operating profit before capital items of R3.16 billion ($197.6 million), compared with an operating loss of R567 million ($35.5 million) in the previous financial year. The rebound reflected in part stronger platinum group metals prices, which provided support as some of the company’s other mining businesses faced weaker conditions.

Balance sheet strengthens before expansion

ARM also ended the financial year with more cash and significantly lower debt. Net cash increased by R3.562 billion ($222.9 million) to R10.171 billion ($636.3 million) as of June 30, 2026, from R6.61 billion ($413.6 million) a year earlier. Gross debt fell to R157 million ($9.82 million) from R2.035 billion ($127.3 million).

Total assets increased to R78.2 billion ($4.9 billion) from R74.325 billion ($4.65 billion), while total equity rose to R63.145 billion ($3.95 billion). The stronger balance sheet gives ARM room to fund the R15.2 billion ($951.1 million) Bokoni expansion and the approved restart of open-pit mining at Nkomati, while continuing to return cash to shareholders.