Caledonia's Record Quarter Propels Zim's Historic ...

Caledonia's Record Quarter Propels Zim's Historic Gold Drive

Nyashadzashe Ndoro | Chief Reporter

Zimbabwe's gold sector is experiencing a significant uplift, highlighted by Caledonia Mining Corporation Plc's announcement of a record-breaking second quarter for its Blanket Mine, pushing the nation closer to its ambitious 40-tonne annual gold production target.

The Victoria Falls Stock Exchange-listed gold giant announced record gold production and an increase in its full-year production guidance.

For the quarter ended June 30, 2025 (Q2 2025), the Blanket Mine produced 21,070 ounces of gold, marking a new second-quarter record for the operation. This represents an increase from the 20,773 ounces produced in Q2 2024.

Half-year gold production for H1 2025 reached 39,741 ounces, a 5.1% increase over the 37,823 ounces produced in the first half of 2024.

In light of this strong performance, Caledonia has raised its production guidance for the Blanket Mine for the full year 2025 to a range of 75,500 to 79,500 ounces of gold.

Mark Learmonth, Chief Executive Officer of Caledonia Mining Corporation, commented on the results, stating:
"Production in the first half of 2025 was excellent and has exceeded our expectations. As a result of this strong performance, we are increasing our annual production guidance. This performance is a testament to the dedication and hard work of our team."

Learmonth further added:
"Blanket Mine continues to provide a solid foundation for growth. As we move forward, we are confident that it will remain a cornerstone of our success, driving value for our shareholders."

In June, it was reported that Zimbabwe's year-to-date gold deliveries had risen to 15.8 tonnes — the highest on record — according to the latest data from Fidelity Gold Refinery (FGR).

This achievement came despite a 9.48% decrease in May deliveries, which totaled 3,488.0632 kg (3.49 tonnes) compared to April. The drop was primarily driven by a 13% decline in small-scale output, while large-scale mining saw a modest 1% month-on-month increase.

However, year-on-year, total production rose by 28%. Small-scale miners significantly boosted their output by 52% from 1.678 tonnes in May 2024, while large-scale production declined by 11.34%, dropping from 1,055.685 kg in May 2024 to approximately 935.5 kg.

Cumulatively, the 15.8 tonnes delivered year-to-date surpassed the 11.27 tonnes recorded over the same period in 2024. Historical data shows five-month deliveries of 11.45 tonnes in 2023, 13.154 tonnes in 2022, 7 tonnes in 2021, and 9 tonnes in 2020 — reflecting a consistent upward trend as the country aims to hit the 40-tonne mark this year.

Kuvimba Mining House reported a record 3.6 tonnes in its financial year ended March 2025, solidifying its position as a leading producer. Historical data shows Shamva Mine, under Kuvimba, produced 108,782.74 ounces from April 2020 to June 2024.

Padenga Holdings expects its 2025 production to align with 2024 figures, targeting no less than 85,000 ounces (2,646 kg). This is based on its 2024 output of 1,811 kg from Eureka Mine and 827 kg from Pickstone Mine, totaling 2,638 kg. The company has allocated US$30 million for 2025 to boost production, with a focus on its mining subsidiary, Dallaglio Investments.

Collectively, these companies are expected to contribute at least 9 tonnes, with other large-scale producers like RioZim adding to the total output, which is projected to reach 10 tonnes.

Much of the weight, however, rests on small-scale miners. Small-scale and artisanal miners are vital to the country’s gold output, historically contributing over 60%. Data from 2024 shows they accounted for approximately 65% (23.71 tonnes out of 36.48 tonnes). Although their output dropped 13% in May 2025, it surged by 52% year-on-year — reflecting ongoing formalization efforts and the implementation of 100% USD payments.

With the 40-tonne target in sight, small-scale miners are expected to deliver around 25 tonnes, buoyed by rising global prices and government initiatives.

Global gold prices hit a record US$3,500 in April and reached US$3,432 per ounce on May 6, 2025, with Goldman Sachs projecting a year-end price of US$3,700 due to geopolitical tensions.

This surge — up 40% over the past year — has enhanced revenue for Zimbabwean producers, offsetting production dips and boosting export earnings.

However, the sector still faces challenges. These include electricity shortages that impact operations, as well as smuggling, which is estimated to cost the country US$1.5 billion annually. Regulatory hurdles, such as export surrender requirements, also pose obstacles.

The mining sector is projected to grow by 7% in 2025, driven by gold and coal. Gold alone is expected to surpass US$3 billion in value, significantly bolstering foreign exchange reserves.

Small-scale miners — estimated to number between 500,000 and 1.5 million — are key to this growth and have the potential to significantly ramp up output with financial support.