Caledonia in US$42 million capex drive for 2025
VICTORIA Falls Stock Exchange-listed Caledonia Mining Corporation has announced a US$41,8 million capital expenditure programme for 2025, aimed at driving growth, enhancing efficiency, and strengthening operational resilience at its Blanket Mine and other projects in Zimbabwe.
The investment includes US$34,9 million for Blanket Mine and is expected to support gold production guidance of 73 500 to 77 500 ounces (oz) while modernising operations to ensure long-term sustainability.
The company met its 2024 production target with 76 656 oz of gold, surpassing the previous year’s output.
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Record-breaking results, including 797 000 tonnes milled and 89 727 tonnes of ore hoisted in December, positions Caledonia for a strong start to 2025 with a 8 400-tonne stockpile in reserve.
In its 2024 Q4 update, the group said the capital plan included US$6,6 million for underground development to access higher-grade areas, US$4,8 million to complete a new tailings storage facility and US$3,4 million for energy-saving initiatives, including converting the Central Shaft winder system.
Additionally, US$5,8 million will fund exploration and feasibility studies at Bilboes and Motapa, critical components of Caledonia’s multi-asset strategy, the resources firm said.
“Over the past seven years, our investment in Blanket has nearly doubled production and has substantially increased the resource base following which Blanket’s mine life now extends to 2034 based on reserves,” Caledonia said.
“The 2025 capital budget addresses immediate operational needs and includes strategic investments to enhance Blanket’s operating resilience and efficiency.”
Caledonia chief executive officer Mark Learmonth said they are “systematically” building a mid-tier Zimbabwe-focused gold producer with profitable, multi-asset production.
“Our continued investments in people, technology and infrastructure will drive efficiencies and create value for our shareholders,” he said.
Cost guidance for 2025 reflects higher expenses, with on-mine costs projected at US$1 050 to US$1 150 per ounce and all-in sustaining costs at US$1 690 to US$1 790 per ounce.
This increase accounts for labour and modernisation costs, along with environmental, social and governance initiatives.
In 2024, Blanket Mine achieved stellar results, with Q4 production reaching 19 841 oz of gold and sales for the year totalling 76 271 oz. Learmonth attributed this success to ongoing investments and operational improvements.-newsda
