Blanket Mine hits record gold output

CALEDONIA Mining Corporation's Blanket Mine has recorded its highest-ever annual gold production of 76 213 ounces, in line with the company's revised 2025 full-year guidance of between 75 500 ounces and 79 500 ounces.

Production rose steadily from 18 671 ounces in the first quarter to a peak of 21 070 ounces in the second quarter, before easing to 19 841 ounces in the third quarter and 17 367 ounces in the fourth quarter.

In a statement, Caledonia said output in the second half of 2025 was affected by lower tonnages from higher-grade areas of the mine, a challenge the company said is being addressed. Production was also disrupted by electricity supply interruptions towards the end of the year.

Despite the challenges, Caledonia said milling throughput remained strong, helping to offset pressure from lower grades. The company expects a stronger production profile in the second half of this year as higher-grade areas increasingly come on stream.

"We are pleased to report that Blanket has once again delivered production in line with guidance, demonstrating the resilience and operational excellence of our team," said Caledonia chief executive officer Mr Mark Learmonth.

Looking ahead, the company issued full-year 2026 production guidance of between 72 000 ounces and 76 500 ounces, reflecting a focus on greater consistency at Blanket.

"Our FY2026 budget reflects our commitment to sustained investment in both our core operations and future growth," Mr Learmonth said. "The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa, where we see long-term, value-enhancing synergies with Bilboes."

Caledonia reaffirmed its focus on safety and long-term value creation for stakeholders.

The company said projected group capital expenditure for 2026 is US$162,5 million, largely directed towards sustaining capital at Blanket and the planned commencement of the Bilboes development project. Caledonia described itself as a strategically important player in Zimbabwe's gold sector, anchored by Blanket Mine and its planned expansion into multi-asset production through projects such as Bilboes.

"This positions the company well towards its goal of becoming a major force by diversifying beyond Blanket and significantly contributing to the economy through investment, employment, taxes and community benefits," Caledonia said.

The miner added that funding arrangements for the Bilboes project are well advanced. Sustaining capital expenditure at Blanket could increase by about US$11 million to implement a long-term solution to recurring power interruptions and poor power quality that have affected the mine over several years.

"The capital expenditure plan continues to prioritise operational reliability, safety and long-term value, ensuring Blanket remains well positioned for consistent production and future growth," Caledonia said.