Caledonia Mining, one of Zimbabwe’s biggest gold producers, says it has yet to feel the impact of the Iran war, even as the conflict disrupts gold flows into Dubai, the global trading hub where Zimbabwe sends most of its bullion.
Caledonia, which exports its gold directly, says its own sales have not been hit.
“At present Caledonia is selling its exported portion of gold through South Africa (rather than the Middle East), ensuring uninterrupted revenue flows for that portion,” the company reports.
The miner, which operates Blanket Mine, also says it is so far insulated from the immediate impact of the recent rise in fuel costs. The company consumes about two million litres of diesel a year, but fuel accounts for less than 3% of operating costs. It has secured one million litres of diesel as a buffer against supply disruptions. Caledonia also says its investment in solar has eased reliance on diesel power backup. The company built a 12.2MW plant for $14.3 million in 2023, before selling to energy provider CrossBoundary in 2025 for $22.3 million.
“Importantly, reliance on diesel has significantly fallen over the last few years: diesel accounted for 8% of the Group’s power in 2020, but has reduced to only 2% last year, supported by around 20% of total power requirements being met by solar power,” Caledonia says.
Caledonia is also spending $14.2 million on a 34km power line to connect Blanket Mine to the national 132kV grid, with completion expected in 2027.
Firmer gold prices and strong output helped Caledonia Mining nearly triple its 2025 profit. Profit after tax rose 193% to $67.5 million, from $23.1 million in 2024. Revenue jumped 46% to $267.7 million, up from $183.0 million, driven by higher gold prices and solid sales volumes. Production at Blanket Mine was broadly steady at 76,213 ounces, in line with 2024.
In 2026, Caledonia plans to invest $178.9 million. This includes $132.1 million for the Bilboes project. Once completed, Bilboes will produce about 200,000 ounces of gold in its first full year, making it Zimbabwe’s largest gold mine. First output targeted for late 2028.
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