Online Reporter
Sikhulekelani Moyo
Zimpapers Business Hub
Caledonia Mining Corporation’s Blanket Mine in Zimbabwe has achieved record gold output of 76 213 ounces, in line with the firm’s revised 2025 full-year production guidance of 75 500 ounces to 79 500 ounces.
Output rose from 18 671 ounces in the first quarter to 21 070 ounces in the second quarter, before easing slightly to 19 841 ounces in the third quarter and 17 367 ounces in the fourth quarter.
In a statement, Caledonia said production in the second half of 2025 was adversely affected by lower tonnages from higher grade areas, which is being addressed, and interruptions in the electricity supply at the end of the quarter.
Caledonia said milling throughput remained robust, offsetting some grade pressure, with the quarterly production profile expected to be stronger 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.
“The FY2026 production guidance of 72 000 – 76 500 ounces reflects the increased consistency we are focused on from Blanket. Our FY2026 budget reflects our commitment to sustained investment in both our core operations and future growth. 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.
“We remain focused on investing in safety and delivering long-term value for all our stakeholders,” Mr Learmonth said.
Caledonia Mining is a strategically important player in Zimbabwe’s gold sector, primarily through its flagship Blanket Mine and its strategic expansion into multi-asset production with projects like Bilboes.
This positions the company well towards its goal of becoming a major force by diversifying beyond Blanket and significantly contributing to the economy via investment, jobs, taxes, and community benefits. The company said projected capital expenditure in 2026 was mainly focused on sustaining capital at Blanket and the planned commencement of the Bilboes development project, with total group capital expenditure projected to be US$162,5 million.
“The capital expenditure plan continues to prioritise operational reliability, safety, and long-term value, with significant allocations for both sustaining and growth projects, ensuring Blanket remains well-positioned for consistent production and future growth,” said Caledonia.
“Funding initiatives in respect of the capital requirements for the Bilboes project are well progressed. Sustaining capital expenditure may increase by approximately US$11 million to implement a long-term solution to the recurring power interruptions and poor power quality that Blanket has experienced over several years.”
