Caledonia Mine sets new gold production record

Caledonia Mining Corporation Plc, a Jersey-domiciled miner focused on Zimbabwe's gold sector, has reported a near 10% increase in gold production for the first quarter of 2025, with a total of 18,671 ounces of gold produced at its Blanket Mine.

This represents a significant increase from the 17,050 ounces produced in the first quarter of 2024, and marks a new production record for the company in a first quarter. The previous record for first-quarter production was 18,515 ounces, set in 2022.

The company, which also owns the Bilboes Mine, the Motapa, and Maligreen gold mining claims, noted that the increase in production was driven by strong operational performance. Caledonia reported that 201,755 tonnes were milled during the quarter, which was 13.4% higher than anticipated, contributing to a substantial rise in surface stockpile levels to approximately 15,000 tonnes.

"Quarterly gold production of 18,671 ounces exceeded our Q1 2024 production of 17,050 ounces," the company said in a statement. "This represents a record for first-quarter production, surpassing the previous high of 18,515 ounces set in Q1 2022."

Caledonia remains on track to achieve its annual gold production guidance of between 74,000 and 78,000 ounces for 2025, based on the strong start to the year.

Commenting on the results, Caledonia CEO Mark Learmonth expressed his satisfaction with the performance, particularly given that the first quarter is traditionally the weakest for the company. "I'm delighted to report that production in Q1 2025 has set a new record for production in a first quarter at Blanket, with over 18,500 ounces produced," Learmonth said. "This achievement reflects continued operational improvements and the dedication of our team on the ground. The significant increase in both tonnes milled and the surface stockpile provide a strong foundation for the remainder of the year."

Looking ahead, Learmonth emphasized that the company was well-positioned to generate healthy cash flows in the coming months, particularly with strong gold prices expected. He also highlighted the company's commitment to continued growth, noting that Caledonia has allocated US$41 million in capital expenditure for 2025 to modernize operations, improve mining efficiency, and invest in exploration efforts. Of this amount, US$34.1 million is earmarked for Blanket Mine, while US$6.9 million will be allocated to Bilboes Mine and the Motapa claims.

In addition to the strong operational results, Caledonia also announced the completion of the sale of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited (CMS), to CrossBoundary Energy Holdings for a pre-tax consideration of US$22.35 million, payable in cash. The sale was finalized on April 11, 2025.

CMS owns and operates the 12.2MWac solar plant that supplies power to Blanket Mine. Under the terms of the sale agreement, the solar plant will continue to provide power to Blanket Mine under an exclusive power purchase agreement, ensuring a reliable renewable energy source for the operation moving forward.

This transaction marks a strategic step for Caledonia as it continues to streamline its operations and focus on growth at its core assets. With strong first-quarter results and ongoing investments in both operations and infrastructure, Caledonia is poised for a productive and profitable year ahead.