HARARE – Caledonia Mining Corporation Plc, a gold mining giant operating in Zimbabwe and listed on the Alternative Investment Market (AIM) of the London Stock Exchange, has posted robust results for the second quarter ended June 30, 2025, driven by record gold production at its Blanket Mine and a sharp rise in gold prices.
Gold revenue climbed 30% to US$65 million from US$50.1 million in the same period last year, while gross profit rose 48% to US$33.8 million.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) nearly doubled to US$39.5 million, bolstered by an US$8.5 million one-off gain from the April sale of the company’s solar plant.
Net profit attributable to shareholders surged 147% to US$20.5 million, with adjusted earnings per share rising to 113.9 cents from 44.6 cents.
Operating cash inflows reached US$28.1 million, up from US$19.1 million in Q2 2024. Caledonia also received US$22.35 million from the sale of its Zimbabwean solar subsidiary, strengthening its net cash position to US$26.2 million. A dividend of 14 cents per share was declared.
Blanket Mine produced 21,070 ounces of gold in the quarter, a 1.4% increase year-on-year, supported by higher ore grades and a record 94.4% plant recovery rate. Annual production guidance has been raised to between 75,500 and 79,500 ounces for 2025.
On-mine costs rose 10.9% to US$1,123 per ounce, mainly due to higher labour and maintenance expenses, while the all-in sustaining cost increased 21.5% to US$1,805 per ounce. The average realised gold price jumped 38.5% to US$3,188 per ounce.
The company said exploration at Blanket Mine continues to return high-grade results, with drilling indicating better-than-expected grades and widths in the Blanket and Eroica orebodies and continued mineralisation in the Lima orebody.
Caledonia said the Bilboes feasibility study is progressing, alongside a US$2.8 million exploration programme at the nearby Motapa project, where drilling is targeting both oxide and sulphide resources.
The group’s Chief Executive Officer Mark Learmonth credited the strong results to operational efficiency and favourable market conditions, adding that the company remains focused on delivering higher production and advancing its growth projects.
“We are encouraged by the progress on the Bilboes feasibility study, and we continue to evaluate opportunities that could materially improve project economics.
“At the same time, our exploration programme at Motapa is advancing well, with a clear focus on identifying both sulphide and oxide resources that could support near-term production and longer-term growth,” Learmonth stated.
“Looking ahead, we remain focused on delivering our increased production guidance at Blanket, and advancing our growth pipeline in a way that maximises long-term value for shareholders.
“With a strong operational base and a clear strategic roadmap, Caledonia is well positioned to continue building on this positive momentum.”
Caledonia, which is also listed on the Victoria Falls Stock Exchange and New York Stock Exchange, also announced it will cease publishing quarterly financial statements in line with Canadian securities regulations, opting instead for annual and half-year reports while continuing to disclose quarterly production and cost data.
The company said it remains on track to meet its updated production target and is committed to further modernising operations, controlling costs, and extending mine life through ongoing exploration.
