How has the Increase in Gold Price Impacted Caledonia?

The mining industry, like many others, has been hit with various shocks throughout the last few years.

Turbulent trade and unstable materials pricing has restructured trade and has had prices fluctuating significantly.

Caledonia Mining Corporation has seen the benefits throughout this rocky period, citing the higher gold prices as a driver of its success.

A changing industry

2025 was a turbulent period for supply chains around the world, with critical minerals becoming a core commodity and a key shaper of trade relationships. The mining industry has seen significant growth, as demand for lithium mining and copper developed with the increase of EV demand. Moreover, organisations have been looking to diversify trade away from China, a major power in rare earths and other key commodities, turning towards localisation or the development of new trade relationships.

As such, mining companies have faced greater demand and fluctuating prices, forcing them to adapt and expand regularly. Caledonia is one of the companies celebrating success throughout this period, as a result of price volatility. 

Caledonia Mining Corporation is a Zimbabwean focused development and mining corporation. It owns 100% stakes in the Bilboes Sulphide Project and the Motapa and Maligreen gold mining claims, as well as 64% stake in Blanket Mine, which produces gold. The company has invested in and increased production at its sites, allowing it to become a multi-asset gold producer in Zimbabwe. 

The company has released its unaudited 2025 FY financial statement, celebrating success throughout the company and growth across revenue, profit and cash generation. 

"The Group's performance during the year was underpinned by a higher gold price environment, providing a robust platform to execute the next phase of growth into 2026 and beyond," Caledonia states.

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Financial growth

The Group celebrated strong financial performance for FY 2025, partially due to higher gold prices throughout the year. Blanket Mine produced 76,213 ounces of gold throughout the year and sold 77,392oz, with 2,262 oz of gold bullion on hand at the end of the year. The company is working to meet demand, demonstrating efficient production alongside strong sales. 

At the Bilboes oxide operation, 1,683 oz of gold was produced and sold in FY25, leading to a consolidated 79,075oz of gold sold throughout the year, up from 77,917oz in FY24.

Caledonia also saw a significant increase in revenue, growing by 46%. By the end of FY25, the company had pulled in US$267.7m, as opposed to FY24's US$183m. This was due to a combination of higher gold price and strong sales volume. Margins were improved throughout the year, due to higher gold price, resulting in a gross profit increase to US$137.1m, up from US$77m in FY24. 

"2025 has been a strong year for the Group, marked by record financial performance, excellent cash generation and continued strategic progress across the business. Revenue increased by 46% to US$267.7m, profit after tax rose by 193% to US$67.5m, and net cash generated from operations increased by 82% to US$76.2m," says Mark Learmonth, Caledonia's Chief Executive Officer.

"At Blanket, we produced 76,213 ounces of gold, meeting our revised increased guidance, while continuing to invest in exploration. The results from our drilling programmes are highly encouraging and reinforce our confidence in the long-term future of the operation.

"Beyond Blanket, we advanced our organic growth strategy and made decisive progress with Bilboes, our next mine. The publication of the Feasibility Study confirmed our expectations that Bilboes is an attractive and robust project that has the potential to materially change our production and profit profile and at the same time provide meaningful contributions to Zimbabwe."

Expanding the company

Caledonia has also been exploring activities across Motapa, a brownfield exploration asset of strategic importance for developing a multi-asset gold production hub. The main focus throughout the site was advancing geological understanding and supporting long term growth. 

"Our investment in Motapa, which sits contiguous to Bilboes, forms an important part of our strategy to build a broader production and growth platform in Zimbabwe," adds Mark.

"Our post-period funding initiatives, together with the proceeds from the sale of the solar plant at Blanket, have significantly strengthened our balance sheet and leave us well positioned to fund growth while importantly maintaining financial flexibility.

"Looking ahead to 2026, our focus is on execution and the strategic objective of becoming a multi-mine producer. Our commitment is unwavering to safety and our people while maintaining consistent operations at Blanket, advancing Bilboes in line with the financing and development timetable, continuing targeted exploration at Motapa, and delivering sustainable value for shareholders, employees and the communities in which we operate."

The company has clear plans for its upcoming ventures, driven by the financial success and project acceleration throughout 2025. It will continue to explore the Mpudzi area at Motapa in order to continue production to meet consumer demand.