While the fat lady has not sung, it appears the worst of the COVID-19 storm is over, particularly for South Africa’s mining industry. Despite everything thrown at it this year it has remained resilient.
“Mining companies have continued to enjoy the gains in commodity prices, assisted by a weaker rand, as platinum basket prices increased and investors turned to gold as a safe investment amid concerns about the COVID-19 pandemic and global trade tensions.” – PwC’s 12th edition SA Mine
PwC Africa Energy Utilities & Resources Leader, Andries Rossouw, however, cautions that despite this, the long-term future of the industry is unknown.
According to the report South Africa showed a total of R439 billion (52%) YOY increase from 2019, largely attributed to the increase in market capitalisation of companies within the gold and PGM sectors. Gold and PGM accounted for 80% of the market capitalisation of the companies analysed this year and continue to dominate the sector.
The report also pins the total revenue generated by the South African mining industry for the year ended 30 June 2020 grew by 4%. This was mainly driven by PGMs, gold and iron ore, which saw increases in revenue for the 12-month period.
Read more of PwC’s 12th edition SA Mine