Caledonia Mining Corporation achieved record gold production at its flagship Blanket Mine in Zimbabwe, buoyed by firm international gold prices and disciplined cost management, positioning the group for sustained growth.
According to the company’s key performance indicators, Blanket Mine remained firmly on track to meet its revised 2025 full-year production guidance of between 75 500 ounces and 79 500 ounces of gold.
Production for the three quarters totalled 58 847 ounces.
Output rose from 18 671 ounces in the first quarter to 21 070 ounces in the second quarter, before easing slightly to 19 106 ounces in the third quarter.
Caledonia’s third quarter revenue grew to US$71,4 million, representing a 52,4 percent increase from the same period in 2024, driven by a combination of higher gold prices, which surged about 40 percent year-on-year, and increased sales.
Profitability also strengthened markedly compared to the corresponding periods last year, owing to favourable international gold prices and improved operational performance.
Cash generation remained a key highlight as net cash from operating activities more than doubled to US$13,3 million in the first quarter and climbed further to US$28,1 million in the second quarter, providing internal funding for ongoing capital projects and growth initiatives.
Caledonia said US$10,1 million was deployed into capital projects in the first quarter, largely focused on mine development and sustaining operations. Beyond Blanket Mine, the group continues to advance its strategic growth prospects.
ZiG
Work is ongoing on the feasibility study at the Bilboes gold project, aimed at optimising the economics of the high-grade deposit, while a US$2,8 million exploration programme at Motapa, launched in 2025, is targeting new resources to underpin future production growth.
Caledonia Mining is a highly important player in Zimbabwe’s gold sector, primarily through its flagship Blanket Mine and its strategic expansion into multi-asset production with projects like Bilboes, positioning itself to become a major force by diversifying beyond Blanket and significantly contributing to the economy via investment, jobs, taxes and community benefits.
Gold is strategically important to Zimbabwe primarily because it is the country’s largest source of export earnings and foreign currency, a critical anchor for national currency stability, and a major driver of livelihoods and economic growth.
Zimbabwe Gold (ZiG) currency, introduced in April 2024, is backed by the country’s gold and foreign currency reserves, a strategy aimed at stabilising the domestic economy and protecting it against historical currency volatility and hyperinflation.
The country has since surpassed its 2025 annual gold production target of 40 tonnes, achieving this milestone by late November/early December 2025, driven primarily by significant contributions from the artisanal and small-scale mining (ASM) sector.
Deliveries exceeded 41 tonnes by November, with ASM accounting for around 74-75 percent of the total output, a major increase from previous years.-herald
