Gold anchors SA mining

PRICE: SURPASSES HISTORIC HIGH OF $4 000

- Ciaran Ryan

Once-unloved gold has been the standout performer in the mining sector - reaching 48 new highs over the year to June - says the latest PwC Mine 2025 report released this week.

On Tuesday evening, gold surpassed another historic high of $4 000 (nearly R69 000) an ounce, soaring well clear of the average $2 300/oz recorded last year.

Sticky inflation and geopolitical tension (including Trump tariffs and the US shutdown) kept gold's safe haven status alive, while large-scale central bank buying - particularly in China, India and Turkey - cemented a floor under prices.

South Africa's gold mining sector has profited handsomely from rising prices, but suffers from declining production, says PwC.

The country has fallen from the world's top gold producer to around 10th place due to ageing deep-level mines and operational challenges, not least of which are power shortages and seismic events, which kept volumes relatively flat.