Caledonia Mining Corporation plans to spend US$162.5 million on capital expenditure this year, which will include funding to help develop what could be Zimbabwe’s largest gold mine.
In a production update, Caledonia says it plans to spend US$132 million to develop the new Bolboes Mine, subject to board approval and availability of funding.
“The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa where we see long term, value enhancing synergies with Bilboes,” CEO Mark Learmonth said.
Caledonia operates Blanket Mine, which produced 76,213 ounces of gold in 2025, matching output from the previous two years. The company plans to add more mines to its portfolio, with the largest project being Bilboes for an investment of US$584 million. Caledonia expects to start production at Bilboes in 2028, with expectedannual output of 200,000 ounces from 2029 over 10 years.
To fund the Bilboes project, Caledonia is raising capital viaa mix of non-recourse senior debt, contributions from existing operations as well as specialised financing methods such as streaming, where investors provide cash in return for future gold supply.
On Thursday, Caledonia announced a US$125 million convertible bond offering, increasing the size from the US$100 million it had initially proposed. The bonds, which mature in 2033, will pay interest of 5.875% a year and are expected to close on January 20, 2026.
The funds will mainly be used to develop Bilboes and for working capital needs. Part of the proceeds will be spent on financial hedging arrangements designed to reduce potential dilution for shareholders if the bonds are converted into equity.
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