Business Reporter
CALEDONIA Mining Corporation posted a 10,5 percent increase in revenue to US$78,9 million for the third quarter ended September 30, 2026, up from US$71,4 million in the comparative period last year, as firmer bullion prices offset lower output.
The top-line growth was propelled by a significantly higher average realised gold price of US$4 134 per ounce during the period, compared with US$3 434 in the third quarter of 2025, the company said.
Gross profit climbed 13,6 percent to US$41,9 million from US$36,8 million, while operating profit before non-cash fair value adjustments rose to US$36,7 million from US$29,5 million.
However, profit after tax fell 39,3 percent to US$11,3 million from US$18,7 million.
The bottom-line decline stemmed from a non-cash fair value loss of US$12,9 million on derivative financial instruments linked to January 2026 convertible senior notes and gold price hedge put options. This marked a sharp swing from a fair value gain of US$11,5 million in the prior period.
Output at the flagship Blanket Mine was constrained during the quarter by compressed air shortages in deeper mining levels and processing bottlenecks that temporarily locked up 1 100 ounces of gold.
Blanket produced 17 030 ounces, down 11 percent from 19 106 ounces a year earlier, while total group gold sales reached 19 082 ounces.
Unit costs increased as fixed and semi-fixed expenses were spread over fewer ounces. Consolidated on-mine costs averaged US$1 514 per ounce sold, while all-in sustaining costs (AISC) averaged US$2 344 per ounce.
“While production at Blanket in the quarter was below our expectations, the strong gold price supported higher revenue and gross profit,” said Caledonia chief executive officer Mr Mark Learmonth.
“We have a good understanding of the operational issues that affected production and we have taken clear steps to address them, including adding compressed-air capacity at the deeper levels and increasing processing capacity to recover gold temporarily retained in the plant.”
Management revised Blanket’s full-year 2026 production guidance to between 69 000 and 72 500 ounces.
On-mine cost guidance was adjusted to between US$1 700 and US$1 900 per ounce sold, while AISC guidance was set at US$2 650 to US$2 850 per ounce.
Full-year capital expenditure guidance was also trimmed to US$94,3 million.
