South Africa’s Mining Sector Records Solid Financial Performance – PwC
South Africa’s mining sector delivered a solid financial performance for the 2020-2021 financial years with value delivered to all stakeholders despite the current challenging pandemic environment.
The excellent financial performance resulted in mining companies being in a very strong financial position, with record distributions to shareholders and more than a tripling in taxes paid.
Debt has largely been repaid and returns to shareholders reached record rand levels for many companies.
These are some of the highlights from PwC’s 13th edition SA Mine, a series of publications that highlights trends in the South African mining industry released today.
Andries Rossouw, PwC Africa Energy Utilities & Resources Leader, says:
“The growth in SA’s mining industry confirms the resilient nature of the sector and the opportunities that exist in rebuilding the South African economy. With record rand prices for gold, the platinum group metals basket, iron ore and more recently, coal, it was no surprise that the industry’s financial performance exceeded expectations on most fronts.
“The COVID-19 pandemic has also added momentum to the already in focus importance of the environmental, social and governance (ESG) agendas across all industries in South Africa. Multiple stakeholders are increasingly challenging mining companies to make changes to their boardroom agendas on ESG. There is widespread recognition in the industry that for South Africa to achieve its net zero targets, ESG must be a core component of any mining company’s strategy and policies.”