Morning Bites (part 1)

🇿🇦South Africa’s PGM mining output declined 3% YoY in November, reversing from the 4% YoY growth in October, per official data. Meanwhile, local gold production was also down 6% YoY, vs. the broadly flat dynamics of October

Eskom, which controls ~80% of South African electricity supply, has said that it does not expect power cuts until March 2026, unless any major breakdowns occur. We see this as a supportive factor for the future output of South African miners. However, in 11mo25, the country’s PGM production was still down ~4% YoY, which corresponded to some market participants’ estimates that local PGM supply would decrease to ~4.8mnoz in 2025 (vs. ~5.1mnoz last year) amid persisting operational headwinds

SA accounts for ~70% of global Pt, 38% of Pd supply and 3% of world gold production

#PGMs #gold