Caledonia Mining has posted record profits for 2024, driven by a combination of stronger gold prices, increased production, and improved cost control.
The company’s Blanket Mine produced 76,656 ounces of gold during the year, up from 75,416 ounces in 2023 and in line with its targets. Benefiting from an average gold price of $2,347 per ounce—significantly higher than 2023’s US$1,910—Caledonia’s revenue surged to US$183 million, compared to US$146.3 million the previous year. Gross profit soared 86% to a record US$77 million.
Building on this momentum, Caledonia plans to invest an additional US$41 million into its operations in 2024, with the bulk of the funding going into Blanket Mine.
While Blanket remains Caledonia’s sole producing asset, the company is advancing its expansion plans at Bilboes and Motapa, two projects acquired over the past three years. A feasibility study for Bilboes, initially set for completion in early 2025, has been extended to allow for further analysis of the best ways to develop and fund the potentially vast project.
“Bilboes remains a highly attractive project, and we are confident that we will find the optimal development method to maximise returns for shareholders,” says CEO Mark Learmonth. “We continue to refine the feasibility study, exploring ways to enhance project economics and reduce upfront capital requirements.”
Caledonia is also assessing how it can exploit high-grade mineralisation recently identified at Blanket, which it says “could make a meaningful contribution to the initial capital requirements for Bilboes, providing further flexibility around funding.”
