South Africa’s mining sector entered this year on a stronger footing, underpinned by higher platinum group metals (PGM) and gold prices, improved mineral reserve positions and growing interest in critical minerals, professional services firm PwC’s ‘SA Mine 2026’ report shows.

Presenting key findings from the report, PwC Africa Energy, Utilities and Resources leader Andries Rossouw said the sector achieved considerable growth in revenue, profitability, free cash flow and market capitalisation.

He acclaimed during the October 6 presentation that mining companies maintained disciplined capital allocation, focusing on efficiency, brownfield optimisation, mine-life extensions and selective growth, rather than large-scale expansion.

However, Rossouw mentioned that production levels dropped in some of South Africa’s main commodities, such as PGMs, with this well below pre-pandemic levels. Gold, however, recovered somewhat owing to higher prices incentivising higher production.

Commodity prices provided significant upside during the period, with average dollar gold and platinum prices for the 12 months to June 30 having increased by 50% and 80%, respectively, compared with the previous 12-month period.

Concurrently, investment, technology and project development contributed to improved reserve positions across key commodities.

The combination provides a positive platform for the sector, the report highlights.

The mergers and acquisitions activity by South African listed mining companies was largely focused offshore.

Twenty-one transactions were recorded over the past 12 months, with a total disclosed transaction value of about $31-billion. Two large strategic transactions accounted for about 93% of disclosed deal value, reflecting a market characterised by selective rather than broad-based investment, the report states.

Beyond the headline transactions, activity was concentrated around portfolio realignment, targeted consolidation and assets where existing infrastructure can provide a clearer route to production.

Meanwhile, improved precious metal prices translated into a significantly stronger financial performance for the companies analysed in the report.

Total market capitalisation outperformed the rest of the JSE and increased by 23% to R1.61-trillion, up from R1.30-trillion in 2025, with much of the growth driven by the strong performance of the gold sector.

Gold and PGM companies together accounted for 85% of total market capitalisation this year, compared with 77% in the previous year.

Gold sector market capitalisation increased by 26% year-on-year, while the market capitalisation of the PGMs sector increased by 25%, reflecting improved sentiment towards precious metals.

BUILDING ON
“South African mining has an opportunity to build on the momentum we are seeing across key commodities. Higher prices have strengthened the operating environment, while investment and innovation are helping companies get more from existing assets.

“The focus now is on translating these gains into sustained productivity, investment and economic value,” says PwC South Africa Energy, Utilities and Resources assurance partner Vuyiswa Khutlang.

Rossouw pointed out a key opportunity to unlock further value from the country’s mineral resources, established infrastructure and operational capabilities.

He advocated for investment, innovation and favourable economics to bolster mineral reserves.

Moreover, further value could be realised through mature-mine redevelopment, tailings retreatment, beneficiation and technology that improves economic recoverability.

Rossouw posited that new and proposed gold, PGM and copper developments represented encouraging green shoots, but required an enabling, investible environment to attract renewed global investments into the country.

The report’s findings show that South Africa’s mining prospects are still largely linked to existing operations. Improved processing technology, prices, brownfield development, tailings retreatment and better use of existing infrastructure can help bring previously marginal or uneconomic resources into viable mine plans.

“The improvement in reserve positions shows what becomes possible when South Africa combines its geological strengths with investment, technology, prices and technical expertise. This creates scope to extend productive operations and improve the economics of existing resources. Maximising value from existing mines is essential.

“However, we would like to see a competitive enabling environment for new mine investments with a thriving mining ecosystem that encourages investment in exploration, infrastructure and innovation to maintain this momentum,” Rossouw said.

Demand linked to electrification, energy infrastructure, the Fourth Industrial Revolution and evolving global supply chains is creating further possibilities across critical minerals.

South Africa’s critical minerals strategy provides a policy foundation for established and emerging commodities. The next step is implementation, including improving geoscience data, accelerating licensing and permitting, strengthening infrastructure and energy reliability, and supporting local processing where commercially viable, the report avers.

Collaboration between government, mining companies, investors and other stakeholders is highlighted as important in turning these advantages into investable projects.