Caledonia delivers strong gold, profit performance
VICTORIA Falls Stock Exchange-listed gold producer, Caledonia Mining Corporation, recorded an exceptional increase in gold production and revenue during the 2025 first quarter, with gross profit nearly doubling.
During the quarter to March 2025, Caledonia recorded US$56,2 million gold revenue, US$26,9 million gross profit and US$11,8 million contributed to the Zimbabwe Government in the form of royalties and taxes.
The company said gold production at its Zimbabwean operations, Blanket Mine and Bilboes oxides mine, stood at 19 106 ounces during the quarter, compared to 17 476 ounces recorded in the same period last year.
Production guidance at Blanket Mine for 2025 reaffirmed 74 000 to 78 000 ounces of gold.
“Caledonia has delivered an exceptional first quarter with gold production up 9,3 percent and gross profit nearly doubling to US$26,9 million compared to the same period last year,” said Caledonia chief executive officer, Mr Mark Learmonth.
“This strong performance demonstrates our operational resilience and ability to capitalise on favourable gold prices.”
Recently, Caledonia sold its 12,2 MW solar power plant for US$22,35 million, unlocking a profit of US$14,3 million.
The sale, completed on April 11 to CrossBoundary Energy (CBE), strengthens Caledonia’s cash position and allows the company to redirect capital toward its core gold mining operations and strategic expansion in Zimbabwe.
Mr Learmonth said: “The successful completion of the solar plant sale for US$22,35 million has significantly strengthened our balance sheet, positioning us well to accelerate our growth plans at Bilboes and Motapa whilst investing to achieve operational improvements and efficiencies at Blanket Mine.
“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.”
Blanket Mine produced 18,671 ounces of gold in the first quarter of 2025, a 9,5 percent increase from 17,050 ounces in the same period of 2024.
The company said the improved performance was driven by higher milled tonnage, which offset slightly lower grades. The mine remains on track to achieve its 2025 production guidance.
Also, 435 ounces of gold were produced from the Bilboes oxide mine in the quarter.
Work continues on finalising the Bilboes project’s feasibility study, focusing on optimising the economics in response to updated capital cost projections.
“The company is evaluating various development scenarios to maximise shareholder returns,” said Caledonia.
“Following encouraging results from drilling at Motapa in 2024, Caledonia has launched a US$2,8 million exploration program for 2025, targeting both sulphide and oxide resources.”
Meanwhile, Caledonia has announced that the board of directors has approved a quarterly dividend of 14 United States cents (US$0,14) on each of the company’s shares.
“Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy, which the Board adopted in 2014,” said the gold producer.
“The board will consider future dividends as appropriate and in line with other investment opportunities and its prudent approach to risk management.”-herald
