KEY POINTS
- Higher gold and platinum prices lifted mining revenue, profitability and market value over the past year.
- South African listed miners recorded 21 deals worth about $31 billion, mostly involving overseas assets.
- PwC says better technology, infrastructure and investment could unlock more value from existing mineral resources.
South Africa’s mining industry has recorded a stronger financial and operational performance, helped by a sharp rise in gold and platinum prices per PWC, improved mineral reserves and growing global demand for critical minerals.
According to PwC’s SA Mine 2026 report, the sector recorded notable gains in revenue, profitability, free cash flow and market capitalisation during the 12 months to June 30.
PwC Africa Energy, Utilities and Resources leader Andries Rossouw said the improved performance gives the industry an opportunity to build on its gains and extract greater value from South Africa’s mineral resources.
The report shows that mining companies largely maintained a disciplined approach to capital allocation. Instead of pursuing major expansion projects, companies concentrated on improving efficiency, optimising existing operations, extending mine lives and selectively investing in growth opportunities.
However, the stronger financial performance did not translate into higher production across all commodities.
Production of some major commodities, particularly platinum group metals (PGMs), remained below pre-pandemic levels. Gold production showed some recovery, with higher prices creating stronger incentives for mining companies to increase output.
Gold and platinum prices drive stronger returns
Commodity prices were a major contributor to the industry’s improved financial position.
Average dollar-denominated gold prices increased by about 50% in the 12 months to June 30 compared with the previous 12-month period. Platinum prices performed even more strongly, rising by about 80%.
The price gains significantly improved the financial performance of the companies covered by the report.
Total market capitalisation of South African mining companies increased by 23% to R1.61 trillion, compared with R1.30 trillion in the previous year.
The mining sector also outperformed the broader Johannesburg Stock Exchange during the period.
Gold and PGM companies accounted for 85% of the sector’s total market capitalisation, up from 77% a year earlier.
Gold companies recorded a 26% increase in market capitalisation, while PGM companies posted a 25% increase, reflecting stronger investor sentiment toward precious metals.
PwC South Africa Energy, Utilities and Resources assurance partner Vuyiswa Khutlang said the improved commodity environment had strengthened the operating conditions for mining companies.
She said the priority now should be to convert the stronger prices and improved investment environment into sustainable productivity, investment and broader economic value.
South African mining companies were also active in mergers and acquisitions during the period, although much of the activity was directed toward assets outside the country.
PwC recorded 21 transactions involving South African listed mining companies over the past 12 months, with a combined disclosed value of about $31 billion.
Two major strategic transactions accounted for roughly 93% of the total disclosed deal value.
