Online Reporter
Business Writer
VICTORIA Falls Stock Exchange-listed Caledonia Corporation is projected to achieve a 111 percent increase in revenue, reaching US$255,40 million in the second half of 2025, based on a projected gold price of US$3 169 per ounce (oz) for the year.
During the half-year period under review, Caledonia recorded a 37,1 percent rise in revenue, totalling US$121,49 million.
The Zimbabwe-focused miner’s principal asset is the Blanket Gold Mine, located in Gwanda, Matabeleland South Province.
The company also owns the Bilboes Sulphide Project, as well as the Motapa and Maligreen projects.
Stockbroking and equities research firm IH Securities (IH), in its review of Caledonia’s half-year financials, projected an improvement in margins, with an anticipated earnings before interest, taxation and amortisation (EBITDA) margin of 49,4 percent for the year.
“The gold rally has continued into 2025, with the consensus price for the year hovering around US$3 500/oz.
Potential catalysts include ongoing geopolitical tensions and a possible reduction in the federal funds rate, which could further enhance gold’s attractiveness.
“In light of this, Caledonia has chosen not to pursue additional hedging,” IH stated.
The firm noted that the group’s cost guidance reflects a continued modernisation initiative.
Production guidance has been revised upwards from 74 000–78 000 oz to 75 500–79 500 oz, indicating potential for further top-line growth.
“Management expects the record recovery rate achieved during the quarter to be maintained,” IH added.
On the cost front, the installation of power constraints correction equipment in November has resulted in savings of US$18 per ounce.
“In the second quarter of 2025, a new clocking system (‘Firefly’) was introduced to enhance labour management and reduce inefficient labour allocation going forward.
“Guidance for all-in sustaining costs (AISC) remains unchanged at US$1 690–US$1 790/oz, with an anticipated capital expenditure of US$41 million,” IH reported.
Included in the capital expenditure is the reconfiguration of the central shaft winder, expected to yield annual power savings of US$1,2 million.
IH concluded that the flagship Blanket Mine appears well-positioned for further positive developments in the near term.
On-mine costs rose to US$1 161/oz, compared to US$1 037/oz during the same period last year.
In the group’s pipeline are ongoing feasibility studies at Bilboes and surface exploration activities at Motapa.
