Caledonia Mining is showing how to take full advantage of firmer gold prices, reporting a strong first quarter of 2025 as it ramped up production and strengthened its balance sheet.
The company, which operates the Blanket Mine in Gwanda and is developing the Bilboes project, posted revenue of US$56.2 million for the quarter, up 46% from the same period in 2024. Gross profit nearly doubled to US$26.9 million. Net profit attributable to shareholders surged to US$8.9 million, a 493% increase from the US$1.5 million recorded in Q1 2024.
Gold production rose 9.3% to 19,106 ounces, supported by output from both Blanket and the oxide operations at Bilboes. Caledonia benefited from a strong average gold price of US$2,896 per ounce, up 42% year-on-year.
“This strong performance demonstrates our operational resilience and ability to capitalise on favourable gold prices,” said Caledonia CEO Mark Learmonth.
The company also strengthened its balance sheet. After completing the US$22.35 million sale of its solar plant in April, Caledonia’s pro forma net cash position improved to US$18.6 million, a sharp turnaround from a net debt position of US$14.2 million a year ago.
Caledonia paid US$11.8 million in royalties and taxes to the Zimbabwean government during the quarter — more than double the amount paid in the same period last year. With gold prices at record highs and companies like Caledonia expanding output, the results point to rising fiscal contributions from the mining sector when the government is looking to shore up public revenues.
The company has reaffirmed its 2025 production guidance of 74,000 to 78,000 ounces at Blanket. It has also launched a US$2.8 million exploration programme at its Motapa asset.
Says Learmonth: “As we move forward in 2025, we remain focused on three strategic priorities: maximising profitable production at Blanket, optimising the economics of the Bilboes project, and unlocking the exploration potential at Motapa. I am confident that our disciplined approach to capital allocation and strategic growth will continue to deliver strong returns for our shareholders.”
