By: Creamer media

In its quarterly results, Caledonia reports that revenue increased by 18.3% to $66.43-million, compared with $56.18-million in the first quarter of 2025, driven primarily by a significantly higher average realised gold price.

The company notes that its Blanket mine, in Zimbabwe, produced 14 767 oz of gold in the first quarter and sold 13 372 oz, with 3 656 oz of gold bullion on hand at quarter-end.

Consolidated gold sales – including production from the Bilboes oxide operation, also in Zimbabwe – were 13 784 oz, compared with the 19 388 oz sold in the comparative quarter.

Caledonia explains that production during the quarter was adversely affected primarily by constrained access to higher‑grade areas at Blanket.

This meant that, although tonnes milled were slightly higher than the comparative quarter, the head grade reduced from 3.1 g/t to 2.5 g/t, resulting in a lower recovery. As a result of the lower grade and lower recovery, gold production was reduced and cost per ounce increased.

Caledonia CEO Mark Learmonth says measures to improve the grade have already been implemented, noting that the grade has improved month-on-month during the quarter, and the improvement has continued into April. 

“As previously advised, we expect production to be weighted towards the second half of the year and we reiterate our full‑year production guidance at Blanket of 72 000 oz to 76 500 oz,” he says.

Gross profit increased by 19.2% to $32.1-million, compared with $26.93-million in the first quarter of 2025, reflecting improved margins owing to the higher average realised gold price.

Earnings before interest, taxes, depreciation and amortisation  increased by 50.2% to $33.87-million, compared with $22.55-million in the first quarter of 2025, representing a substantial improvement driven by higher gold prices.

Profit after tax increased by 69.4% to $18.91-million, compared with $11.16-million in the first quarter of 2025.

​Net cash generated from operating activities increased by 41.5% to $18.87-million.

In terms of unit costs, Caledonia reports that total costs, both on-mine and all-in sustaining cost (AISC) remained largely within range noting, however, that lower sales volumes resulted in higher on-mine cost and AISC per ounce sold owing to reduced operating leverage.

Consolidated on-mine cost averaged $1 740/oz sold which was higher owing to the lower production volumes.

Similarly, the AISC averaged $2 765/oz sold, based on 13 784 oz sold.

Free cash flow increased to $12.28-million, compared with $4.86-million in the first quarter of 2025.

​The company notes that basic earnings per share (EPS) increased by 77.8% to $0.80 driven by higher profitability.

Further, Caledonia has also announced that its board of directors has approved a dividend of $0.14c a share which will be paid on June 5.

Meanwhile, following the publication of the feasibility study in November 2025 and the successful completion of the $150-million convertible senior notes offering in January, progress continues on advancing the financing of the Bilboes project, including both the interim facility and the broader project finance facility, in line with the group's previously disclosed financing strategy.

The company also notes that encouraging deep‑level drilling results continued to demonstrate the continuity and quality of the Blanket, Eroica and Lima orebodies at depth, supporting confidence in the long‑term sustainability of Blanket.

"Encouraging deep‑level drilling results at Blanket continue to demonstrate the continuity and quality of the orebodies at depth, reinforcing our confidence in the long‑term future of the mine and the sustainability of the group's production profile.

"We continue to trade in line with market expectations and with a strong gold price environment, improving operational performance at Blanket and continued progress towards developing Bilboes, we remain confident in our strategy and our ability to deliver long‑term value for shareholders,” says Learmonth.