Caledonia Mining Corporation Plc says proposed adjustments to Zimbabwe’s royalty and tax regimes for gold producers are expected to weaken profitability at its operating Blanket Mine if implemented.
The measures were outlined in the 2026 National Budget presented by Finance Minister Mthuli Ncube on November 27.
The budget proposes increasing the gold royalty rate from 5% to 10% when prices exceed US$2,500 per ounce, with the higher rate applied to the entire gold price.
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It also seeks to amend the tax treatment of capital expenditure by replacing the current 100% upfront deduction with one spread over the life of the project, altering the timing of allowable deductions without reducing the total amount claimable.
Caledonia said it is still assessing the potential impact on its project portfolio, including the Bilboes Gold Project.
However, the company noted that for Blanket Mine, the changes would “result in a lower level of profitability and cash generation relative to current market expectations.”
The mining firm, which has long operated in Zimbabwe, said it continues to engage with authorities and will issue further updates once more details are clarified.
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