By Agencies

Caledonia Mining reported a record 2025 financial performance on Monday, driven by higher gold prices and strong cash generation, as the group highlighted growing momentum across its Zimbabwean operations and outlined plans for further expansion.

“2025 has been a strong year for the Group, marked by record financial performance, excellent cash generation and continued strategic progress across the business,” said CEO Mark Learmonth.

The AIM-traded company said revenue rose 46% to $267.7m for the year ended 31 December, while EBITDA more than doubled to $125.3m from $59.7m a year earlier.

Profit after tax increased 193% to $67.5m, supported by improved margins and higher realised gold prices, which averaged $3,383 per ounce over the year.

Total gold sales increased to 79,075 ounces, compared with 77,917 ounces in 2024, with Blanket Mine producing 76,213 ounces and meeting revised guidance.

The Bilboes oxide operation contributed a further 1,683 ounces during the year.

Cash generation strengthened significantly, with net cash generated from operating activities rising 82% to $76.2m, while free cash flow increased to $62.1m from $10.6m.

The balance sheet improved materially, with cash and cash equivalents rising to $35.7m, resulting in a net cash position of $23.8m compared with net debt of $8.7m a year earlier.

Costs increased during the period, with all-in sustaining costs averaging $1,952 per ounce, up from $1,506, reflecting inflationary pressures and investment activity. Basic earnings per share rose 211% to $2.83.

“At Blanket, we produced 76,213 ounces of gold, meeting our revised increased guidance, while continuing to invest in exploration. The results from our drilling programmes are highly encouraging and reinforce our confidence in the long-term future of the operation.”

Operationally, Caledonia advanced its growth projects, including the completion of the Bilboes sulphide feasibility study, which confirmed a single-phase development with robust economics, and continued progress at the Motapa project.

The company also appointed July Ndlovu as an independent non-executive director in November.

Caledonia declared a quarterly dividend of 14 US cents per share, payable on 17 April.

“Beyond Blanket, we advanced our organic growth strategy and made decisive progress with Bilboes, our next mine,” said the CEO.

“The publication of the feasibility study confirmed our expectations that Bilboes is an attractive and robust project that has the potential to materially change our production and profit profile.”

Learmonth added, “Our investment in Motapa, which sits contiguous to Bilboes, forms an important part of our strategy to build a broader production and growth platform in Zimbabwe.

“Our post-period funding initiatives, together with the proceeds from the sale of the solar plant at Blanket, have significantly strengthened our balance sheet and leave us well positioned to fund growth while importantly maintaining financial flexibility.

Learmonth said the group’s strengthened balance sheet and supportive gold price environment positioned it well to fund growth and execute its strategy of becoming a multi-mine producer in Zimbabwe, with a focus on advancing Bilboes, progressing exploration at Motapa and maintaining stable operations at Blanket.

“We continue to receive strong and constructive support from the Government of Zimbabwe in implementing our strategy. Looking ahead to 2026, our focus is on execution and the strategic objective of becoming a multi-mine producer.”