South African gold sales slump by a third in July as mining output falls 7.5%

South Africa's gold sector was the single biggest drag on mineral sales in July 2026, according to preliminary figures released by Statistics South Africa (Stats SA) on 10 September. The value of gold sales fell 33.4% year on year to about R12.5bn, knocking 8.5 percentage points off total mineral sales, which declined 5.6%.

Gold production volumes also fell. Stats SA's tables show gold output down 7.4% on July 2025, reversing a 6.2% increase in June. Total mining production dropped 7.5% year on year, a sharp deterioration from the revised 4.3% decline in June, with platinum group metals (PGMs), coal and iron ore the largest negative contributors.

Weakness spreading into the third quarter

On a seasonally adjusted basis, mining output fell 1.9% month on month in July after edging up 0.1% in June. For the three months to the end of July, production was down 5.5% compared with the previous three months. Gold fell 4.6% over that period and subtracted 0.4 of a percentage point, alongside PGMs, manganese ore and iron ore.

The figures follow second-quarter GDP data released on 8 September, which showed mining and quarrying output retreating and contributing to a 0.2% contraction in the economy. Business Day said the July print was an early sign that the sector's weakness had carried over into the third quarter.

Why sales swing more than output

Monthly gold sales figures are volatile because they depend on when producers sell refined metal, not only on how much they mine. June was a case in point: gold sales more than doubled year on year, rising 125.7% to about R20.7bn and contributing 17.1 percentage points to growth in total mineral sales. A drop of a third in July therefore partly reflects the timing of sales against a strong comparison, rather than a collapse in the industry's revenue.

Still, the production numbers point to genuine strain. Companies have reported higher costs for diesel, reagents and power in 2026. Business Day noted that rising fuel prices linked to the US war against Iran have made it more expensive to run machinery, while Eskom's latest annual report shows that mining and industrial customers paid R115bn for electricity in 2025/26.

What it means

For gold producers, the rand gold price remains the main support: company results for the June half show strong margins even where volumes slipped. But the Stats SA series shows the national industry is still struggling to translate high prices into higher output. Gold carries a weight of 10.48% in Stats SA's mining production index, behind PGMs, coal and iron ore. The next release, covering August, is scheduled for 13 October 2026.

Sources

• Statistics South Africa: Mining: Production and sales (Preliminary), July 2026 (P2041), 10 Sept 2026
• Business Day: Mining output tumbles 7.5% as metals and coal slump, 10 Sept 2026
• EWN: SA mining output drops 7.5% in July as gold sales plunge, 10 Sept 2026

Photo: The Johannesburg city skyline. Khaanya96, Wikimedia Commons, CC BY-SA 4.0.