- Caledonia’s second-quarter profit rose 27% to $30 million.
- Blanket Mine production increased 18% from the first quarter to 17,360 ounces.
- Higher gold prices and improved access to higher-grade areas lifted revenue.
CALEDONIA Mining Corporation reported a sharp rise in second-quarter profit as higher gold prices and improving grades helped its Blanket Mine in Zimbabwe recover from a weak start to the year.
Profit after tax rose 27% to $30 million in the three months ended June 30, compared with $23.6 million a year earlier. Basic earnings per share rose 28% to $1.36 from $1.06.
Revenue increased 16% to $75.9 million from $65.3 million, mainly because of a stronger realised gold price. Revenue was also 14% higher than in the first quarter.
The average realised gold price rose 34% from a year earlier to $4,259 an ounce. The price was, however, 12% lower than in the first quarter.
Global gold prices have been volatile this year after reaching record levels in January. The World Gold Council said geopolitical risks, investor demand and changes in interest-rate expectations were among the main factors behind gold’s performance in the first half of 2026.
Blanket produced 17,360 ounces of gold in the second quarter, up 18% from 14,767 ounces in the first quarter. The average feed grade rose to 2.9 grams per tonne from 2.5 grams per tonne.
“The second quarter represented a significant improvement in operating performance across the business,” Chief Executive Mark Learmonth said.
The improvement followed measures aimed at restoring access to higher-grade ore. Caledonia said grades had improved steadily since January and that the company was accelerating mine development to reach higher-grade areas.
The company also moved to a seven-day operating schedule from June. It expects the change to allow about 200 tonnes a day of additional ore to be processed.
Blanket’s output was still 18% below the 21,070 ounces produced in the second quarter of 2025. That quarter was a record and benefited from what Caledonia described as exceptional grades.
The company said planned mining sequences and limited access to higher-grade areas during the first half of 2026 were responsible for much of the difference. It expects production to improve further in the second half.
Blanket is about 15 kilometres west of Gwanda in Matabeleland South. Caledonia says it is the largest producing mine in the Gwanda Greenstone Belt, which has a long history of gold mining.
Cash generation remained strong. Net cash generated from operating activities rose slightly to $28.4 million from $28.1 million a year earlier.
Cash and cash equivalents stood at $171.8 million at June 30, compared with $35.7 million at the end of 2025. Caledonia said its cash position was strengthened by operating cash generation and proceeds from its January convertible notes issue.
The company raised $150 million through the issue of 5.875% convertible senior notes due in 2033. Caledonia said the net proceeds of about $130 million form part of the funding package for the Bilboes gold project.
Bilboes is being developed as Caledonia’s next major Zimbabwean mining operation. The company said front-end engineering has started and that the first physical work on site is expected in October 2026.
Caledonia retained its 2026 Blanket production guidance of between 72,000 and 76,500 ounces. It said production should be stronger in the second half as access to higher-grade areas improves and other operating measures take effect.
Management expects Blanket’s 2027 production to exceed the current guidance range. It said this would depend on higher run-of-mine production from the seven-day shift system and possible oxide mining at the K-pits.
The stronger results also affect stakeholders beyond Caledonia’s shareholders. Blanket has a 10% employee ownership trust and a 10% Gwanda Community Share Ownership Trust, giving employees and the local community a direct interest in the mine’s performance.
Caledonia reported that its community development spending in Zimbabwe reached $1.6 million in 2025. Payments to the Gwanda Community Share Ownership Trust rose to $5.5 million that year, according to company information reported by The Herald.
The board declared another quarterly dividend of 14 U.S. cents per share. The payment is due Sept. 4, with the relevant record date set for Aug. 21.
The 14-cent dividend should not be described as an increase. Caledonia had already declared a 14-cent quarterly dividend in March 2026, meaning the latest announcement maintains the existing quarterly rate.
