One of SA’s richest Noluthando Gosa loses $5.7M in 24hrs following fall in shares in company

South African business tycoon Noluthando Gosa has reportedly lost $5.7 million after shares of ArcelorMittal South Africa (ArcelorMittal SA) fell by over 40 percent. ArcelorMittal SA is a subsidiary of the Luxembourg-based multinational steel manufacturing firm ArcelorMittal.

The astute South African entrepreneur saw her stake in ArcelorMittal SA suffer a market value decline of $5.7 million occasioned by investors’ reaction to the group’s latest trading update, leading to a substantial slump in its share price, according to Billionaires Africa.

The outlet said her stake in ArcelorMittal SA declined by $13.4 million on July 18 at the opening of the Johannesburg Stock Exchange to $7.67 million on July 19. The reduction is attributed to a 42.7-percent plunge in the company’s shares, slumping from “R3.49 ($0.195) on July 18 to R2 ($0.112)$0.195 on July 19, ultimately leading to the group’s market capitalization dipping below $130 million.”

ArcelorMittal SA holds an annual production capacity of 7 million metric tonnes of liquid steel. “The recent decline in the company’s shares follows a cautionary trading update in which ArcelorMittal SA warned that load shedding and persistently high debt would result in a loss for the six months ending June 2023,” the report by Billionaires Africa further said.

It added that Gosa has a 6.15-percent stake in the Gauteng-based steelmaker. Despite losing millions from her stake in ArcelorMittal South Africa, she derives the majority of her fortune from a well-diversified investment portfolio.

Besides having a stake in ArcelorMittal SA, she is the founder and CEO of Akhona Group Pty Ltd, a 100% black privately held investment holding company. She is also a founding member of the first telecommunication regulatory authority, the Communications Authority of South Africa (ICASA).

She has served as an Investment Committee Member of the National Empowerment Fund and also served as the Chairperson of the Gauteng Liquor Board.