Russia is getting frozen out as traders negotiate metals contracts

In 2020, the government ordered miners to pay royalties in foreign currency.

Lease rates for platinum peaked at around 10% in May, higher than at the peak of the pandemic.

Increases in the price of chemicals, steel components, explosives and fuel drove Northam's production costs 18.9% higher.

The company said gold production fell by 77% in the first half following a strike at its South African gold operations.

Neal Froneman, who has urged gold miners to consolidate, said "the market is just not conducive at this stage to doing value-accretive transactions."

Company now expects its US PGM mines to produce between 445,000-460,000 ounces of platinum and palladium this year, down from 550,000-580,000 ounces expected previously.

Platinum prices have fallen from a 9-month high of $1,179.81/oz in March to around $900.

Nornickel's first-half sales of nickel fell by 6%, palladium by 4% and platinum by 18%.

Platinum group metals have come off their highs seen during the early part of 2021, when the global economy started to emerge from the covid-19 shutdowns.