By: Creamer media

The company has acknowledged the proposed changes announced to the royalty and tax regimes, as they apply to gold miners, in Zimbabwe’s 2026 National Budget presented by Finance Minister Professor Mthuli Ncube on November 27.

These include two proposed fiscal measures relevant to the gold sector: an increase in the royalty rate from 5% to 10% when the gold price exceeds $2 500/oz (with the higher rate understood to apply to the full gold price), and a change to the tax treatment of capital expenditure whereby the current 100% upfront deduction would instead be spread over the life of the project, affecting the timing, but not the total amount, of tax payable.

Caledonia is assessing the implications of the proposed changes for its portfolio of assets, as alluded to above, as well as the potential effects on the recently announced economics of the Bilboes gold project. 

Caledonia has a long-standing operating presence in Zimbabwe and continues to engage constructively with the relevant authorities, the company points out.

It will provide a further update once more clarity is available.