New York Stock Exchange-listed gold miner Caledonia Mining Corporation Plc has reported that gold production at its Blanket Mine in Zimbabwe met guidance for the 2025 financial year, while the company flagged lower production expectations and higher costs for 2026 as it ramps up investment in sustaining and growth projects.
Caledonia said Blanket Mine produced 76,213 ounces of gold in the year ended December 31, 2025, falling within the revised guidance range of 75,500 to 79,500 ounces and broadly in line with output recorded over the previous two years.
Fourth-quarter 2025 production amounted to 17,367 ounces, down from 19,841 ounces in the corresponding quarter of 2024. The company attributed the decline in the second half of the year to lower tonnages from higher-grade areas and power supply interruptions towards the end of the quarter. Milling throughput, however, remained strong and partially offset the impact of grade pressures.
Looking ahead to 2026, Caledonia expects Blanket Mine production to range between 72,000 and 76,500 ounces, with output weighted towards the second half of the year as higher-grade areas come on stream.
On-mine cash costs are projected at between US$1,500 and US$1,700 per ounce sold, while all-in sustaining costs are expected to range between US$2,100 and US$2,300 per ounce sold. The higher cost outlook reflects inflationary pressures, rising operating costs and increased sustaining capital expenditure.
Related Stories
The company has forecast total group capital expenditure of approximately US$162.5 million in 2026. This includes US$26.6 million in sustaining capital, largely directed at Blanket Mine, and US$135.9 million in growth capital, with the bulk earmarked for the proposed Bilboes gold development project, subject to board approval and funding.
Caledonia said it is also considering additional capital expenditure of about US$11 million to address persistent power interruptions and poor power quality at Blanket Mine, which have previously disrupted production and increased operating costs due to reliance on diesel generators.
Any further investment will depend on the outcome of technical and financial assessments and board approval.
Commenting on the results, Caledonia chief executive officer Mark Learmonth said the mine had once again delivered production in line with guidance, demonstrating operational resilience.
He added that the 2026 budget reflects continued investment in existing operations and future growth projects, including Bilboes and exploration at Motapa.
Leave Comments