Online Reporter
Sikhulekelani Moyo
Zimpapers Business Hub
VICTORIA Falls Stock Exchange-listed gold producer Caledonia Mining Corporation has reported an 18,3 percent revenue increase to US$66,43 million in the first quarter of this year, from US$56,18 million in the same period last year.
In a statement of its abridged and unaudited quarterly results and details of the management conference call for the first quarter ended March 31, 2026, Caledonia said the group’s financial performance in the quarter benefited from a higher gold price, which offset the impact of lower production.
Caledonia chief executive officer Mr Mark Learmonth said: “The financial performance in the Quarter benefited from a higher gold price, which offset the impact of lower production, with revenue increasing by 18, 3 percent to US$66,43 million, EBITDA rising 50,2 percent to US$33,87 million and free cash flow of US$11,93 million, reflecting the benefit of higher gold prices.”
On gold production and sales, Caledonia revealed that Blanket Mine produced 14 767 ounces (oz) of gold in Q1 2026 and sold 13 372 oz, with 3 656 oz of gold bullion on hand at quarter end.
The gold producer said consolidated gold sales, including production from the Bilboes oxide operation, were 13 784 oz, compared to 19 388 oz in the comparative quarter.
“Production during the quarter was adversely affected primarily by constrained access to higher-grade areas. This meant that although tonnes milled were slightly higher than the comparative quarter, the head grade reduced from 3,1g/t to 2,5g/t, resulting in a lower recovery,” said Mr leamonth.
“As a result of the lower grade and lower recovery, gold production was reduced and the cost per ounce increased.
“Measures to improve the grade have already been implemented: the grade has improved month-on-month during the quarter, and the improvement has continued into April.
“As previously advised, we expect production to be weighted towards the second half of the year and we reiterate our full-year production guidance at Blanket of 72 000 to 76 500 ounces.”
Mr Learmonth said encouraging deep-level drilling results at Blanket continue to demonstrate the continuity and quality of the orebodies at depth, reinforcing the company’s confidence in the long-term future of the mine and the sustainability of the group’s production profile.
“We continue to trade in line with market expectations and with a strong gold price environment, improving operational performance at Blanket and continued progress towards developing Bilboes, we remain confident in our strategy and our ability to deliver long-term value for shareholders,” added Mr Learmonth.
Meanwhile, Caledonia has announced that the board of directors of the company had approved a dividend of 14 cents per share, which will be paid on June 5, 2026.
