Analysts project 25 percent revenue jump for Caledonia

Stockbroking and equities research firm IH Securities has projected Caledonia Corporation’s revenue to reach US$230,18 million in 2025 from US$183,018 million in the prior year, supported by firm gold prices and improved production.

In its review of Caledonia’s 2024 financials, IH said Caledonia’s recent trading update already revealed a new record for production in the first quarter at Blanket mine with over 18,500 ounces produced.

“We believe that Caledonia will register revenue of US$230,18 million based on an average consensus price of US$3 000/oz for 2025.

“We see upside to margin improvement with an anticipated EBITDA margin of 48,4 percent in the year,” IH said.

It added that the successful sale of the solar plant to CrossBoundary Energy Holdings for a pre-tax cash consideration of US$22,35 million will also improve cash flows for the group.

Caledonia Mining Corporation Plc is a gold production, exploration, and development company focused on Zimbabwe.

Its primary asset is the 64 percent interest in the Blanket Mine, a gold-producing mine in Zimbabwe.

The company also has stakes in gold miner Bilboes, Motapa and Maligreen gold mining claims, all in Zimbabwe.

Caledonia’s shares are listed on several exchanges, including the Victoria Falls Stock Exchange (VFEX).

In 2024, Caledonia saw gold production at Blanket Mine increase 1,64 percent from 75,416 ounces to 76,656 ounces (oz) whilst ore milled grew 3,51 percent to 797,479 tonnes.

“However, the average grade mined for the year was lower at 3,2g/t versus 3,25g/t in the previous year, with a recovery rate of 93,6 percent versus 93,8 percent in 2023,” reads part of the company’s financials.

It said the Bilboes Oxide Mine produced 1 646oz of gold sold from leaching of the heap leach pads, despite the mine being under care and maintenance since September 2023.

As a result, aggregate gold production for 2024 was at 78,302oz, versus 78,466oz recorded in the same period last year.

The total capital expenditure for 2024 at Blanket amounted to $27,9 million versus a planned expenditure of $30,8 million.

Notable developments within the year include the second phase of the New Tailings Storage Facility for US$8,3 million and further developments to staff housing.-herald