South Africa's production of platinum group metals and gold declined in Q1

According to MiningWeekly, South Africa's mining production fell by 2.8% YoY in March, primarily due to decreased production of platinum group metals (PGMs) and gold.

Data from Statistics South Africa (Stats SA) showed that PGM production declined by 9.9% and gold production by 11.1%, while iron ore production increased by 7.5% YoY.

Seasonally adjusted mining production rose by 3.5% MoM in March, following a 4.1% decline in February and a 0.2% increase in January.

Seasonally adjusted mining production fell by 4.5% QoQ in Q1. The decline was mainly driven by PGMs, though the increase in iron ore production partially offset the decrease.

Seasonally adjusted sales of mineral products rose by 0.5% MoM at current prices, following a 9.6% decline in February and a 1.4% increase in January.

Seasonally adjusted sales of mineral products fell by 10.1% QoQ in Q1.

Bongani Motsa, senior analyst at the Minerals Council South Africa, stated that future gold demand is expected to remain stable, which should benefit South African gold companies.

"Gold is a barometer of global events. It has various uses, from jewelry to industrial applications and as a safe-haven investment tool. These characteristics make gold a timeless and ideal metal," he said.

Additionally, he pointed out that despite the contraction in PGM production in February, exports and export revenues were higher than pre-2019 pandemic levels.

He believes that the short- to medium-term outlook for chrome and manganese is positive, especially given the easing of trade tensions.