Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
VICTORIA-FALLS Stock Exchange-listed gold producer Caledonia Mining Corporation Plc has achieved record second-quarter gold production, driven by higher ore grades and improved plant recoveries.
The company also noted that the sale of its solar plant in April had strengthened its balance sheet while securing a reliable, long-term renewable energy supply for Blanket Mine, supporting uninterrupted gold output.
In the three months to June 30, 2025, Caledonia produced 21 070 ounces of gold, marking a 1,4 percent increase from 20 773 ounces in the same period last year. This growth was attributed to operational efficiencies at its flagship Blanket Mine in Gwanda.
“Caledonia has delivered another strong quarter, highlighted by record second-quarter gold production at Blanket and a substantial increase in profitability, reflecting strong operational performance and a higher gold price environment,” said chief executive officer Mr Mark Learmonth in a statement accompanying the results.
The mine’s annual production guidance for 2025 was revised upwards in July to between 75 500 and 79 500 ounces.
A record plant recovery rate of 94,4 percent, up from 93,6 percent in 2024, contributed approximately 175 additional ounces of gold during the quarter.
The company attributed the improved recovery to the introduction of an additional tank in the carbon-in-leach circuit, closer attention to reagent dosage levels, and enhanced process controls. Caledonia stated that this level of recovery is likely to be sustained, provided there are no changes to ore feed grade or mineralogy.
Gold remains Zimbabwe’s largest foreign currency earner, accounting for the bulk of mineral export receipts and providing crucial liquidity to the economy.
Blanket Mine’s strong performance contributes directly to national gold reserves and supports the Reserve Bank of Zimbabwe’s foreign currency holdings, which comprise precious minerals and hard currency.
Zimbabwe is targeting 40 tonnes of gold in 2025, with both small-scale and large-scale miners expected to contribute.
Official data shows total gold output surged to 11,6 tonnes in the second quarter, up from about 8,5 tonnes in the first, largely driven by strong deliveries from small-scale miners.
Operating cash inflows for the quarter rose to US$41,3 million, up from US$28,1 million a year earlier, buoyed by higher production and favourable gold prices.
The April sale of Caledonia Mining Services (Private) Limited, which owns a 12,2 megawatt solar plant, to Cross Boundary Energy Holdings generated US$22,35 million pre-tax (US$21,97 million net), further enhancing liquidity.
“The successful sale of our solar plant in April has strengthened our balance sheet and ensured a reliable, long-term renewable energy supply for Blanket Mine,” Mr Learmonth said.
Total assets rose to US$389,16 million from US$348,36 million a year earlier. During the half-year, US$17,7 million was invested in property, plant and equipment at Blanket Mine, while US$3,1 million went into exploration, mainly at Bilboes and Motapa.
An additional US$18 million was placed into fixed-term deposits to optimise short-term returns.
Mr Learmonth also reported encouraging drilling results.
“The grades and widths we are seeing from this drilling campaign are as good as and, in some cases, considerably better than results from previous drilling campaigns,” he said.
The Bilboes feasibility study is progressing, with work at Motapa focusing on identifying both sulphide and oxide resources to support near-term and long-term growth.
“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,” he said.
Revenue jumped 30 percent to US$65 million from US$50,1 million last year, while gross profit rose to US$33,8 million from US$22,9 million. Net profit attributable to shareholders more than doubled to US$20,5 million from US$8,3 million.
“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,” Mr Learmonth said.
