Gold prices shot past $4,000/oz for the first time yet, giving mining groups further room to pursue acquisitive growth or slash their debt and buoying sentiment in an already upbeat sector.
The metal’s soaring price has made it the standout sector among local miners this year, with SA gold producers recording a 22% year-on-year jump in revenue to R132bn in the year to end-June, according to the latest PwC “SA Mine 2025” report.
For context, the mining sector’s overall revenue was flat year on year.
With bullion up 54% this year, the latest trading updates from SA miners have all pointed to healthier balance sheets and attractive shareholder returns.
AngloGold Ashanti’s net debt fell 92% to $92m in the six months to end-June despite paying out $406m in interim dividends, while Sibanye-Stillwater, the best-performing major miner this year, narrowed its losses from $372m to $211m over the same period.
Record dividends for shareholders
Harmony Gold, SA’s biggest gold producer by volume, rewarded shareholders with a record interim dividend payout after soaring gold prices pushed its revenue up by a fifth in the 2025 financial year.
The surge in safe-haven demand has also seen platinum group metal (PGM) prices riding gold’s tailwinds, offering further support to the local mining sector.
With platinum trading around 12-year highs in recent weeks, soaring precious metals have helped SA Inc shrug off geopolitical noise and US tariffs, pushing the local stock market to record highs.
JSE hits record highs
Spurred by the precious metal rally, the JSE all share index peaked at a record 110,836 points on Wednesday, having chalked up more than 30% this year. By far the best performing sector has been the JSE precious metals & mining index, up more than 185% this year.
The strong sentiment towards SA also saw the rand firming to R17.14/$, its strongest level in more than a year.
“The record-breaking run in gold, with firmer platinum and palladium prices, is underpinning the strength in the rand, while favourable terms of trade and carry-trade inflows are also providing support,” said TreasuryONE currency strategist Andre Cilliers.
Gold’s latest jump comes as the US government continues its shutdown, leaving a question mark over the health of the world’s biggest economy.
The shutdown has delayed the release of US economic data, a crucial barometer for analysts and investors, forcing them to rely on nongovernment data for clues about the country’s monetary policy trajectory.
US policy uncertainty has been the primary driver of gold’s record-breaking run this year as tariffs and protectionist policies have kept investors on the edge of their seats.
This was evidenced by a spike in the price of bullion in early April after the unveiling of Trump’s sweeping reciprocal tariffs, with the rally slowing when the mandate was put on hold for 90 days.
Dollar uncertainty boosts bullion
Trump’s erratic policy positions have called into question the role of the dollar as a store of value, with nearly three-quarters of central bankers in a recent World Gold Council (WGC) survey expecting to see moderate or significantly lower dollar holdings within global reserves over the next five years.
Despite the lack of data, markets are pricing in another US interest rate cut this month, lending further support to bullion. Gold tends to benefit from rate cuts, which make precious metals more attractive than bonds and other interest-bearing assets.
“Markets are pricing in consecutive US Federal Reserve rate cuts for October and December, supported by a dovish policy outlook and persistent geopolitical tensions,” said TreasuryONE head of market risk Wichard Cilliers.
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