HARARE — Caledonia Mining Corporation reported a 10.5% increase in third-quarter revenue to US$78.9 million, supported by higher gold prices, although operational challenges at its Blanket Mine in Zimbabwe reduced production and weighed on earnings.
The company, listed on the NYSE American, AIM and Victoria Falls Stock Exchange, said revenue for the three months to September 30, 2026, rose from US$71.4 million in the corresponding period last year. The average realised gold price increased by 20% to US$4,134 an ounce, offsetting an 8% decline in consolidated gold sales to 19,082 ounces.
Blanket Mine produced 17,030 ounces during the quarter, down 11% from 19,106 ounces a year earlier. Production was affected by shortages of compressed air in deeper, higher-grade mining areas and processing inefficiencies that temporarily trapped approximately 1,100 ounces of gold in the metallurgical plant.
Gross profit increased 13.6% to US$41.9 million, while operating profit before non-cash derivative adjustments rose to US$36.7 million from US$29.5 million. However, profit after tax fell 39.3% to US$11.3 million, largely because of a US$12.9 million non-cash fair-value loss on derivative financial instruments associated with convertible notes and gold-price hedging arrangements.
Caledonia said the operational constraints had since been addressed. Two additional compressors were commissioned on October 31, while a new elution vessel installed in October has helped recover more than half of the gold previously retained in the processing circuit.
The refurbished Lima plant has also started processing ore, with throughput expected to increase towards 200 tonnes per day during the fourth quarter. Management expects these improvements to support a recovery in production consistency into 2027.
The company revised its 2026 Blanket production guidance to between 69,000 and 72,500 ounces. It also increased its on-mine cost guidance to US$1,700-US$1,900 per ounce sold and all-in sustaining cost guidance to US$2,650-US$2,850.
Caledonia is simultaneously advancing its longer-term growth strategy, with the Bilboes Gold Project remaining its immediate priority. Its Zimbabwean subsidiary signed a facilities agreement with a consortium of local banks on November 5 for borrowing of up to US$150 million to support the project. First gold production remains targeted for the fourth quarter of 2028.
The company also reported a 22% increase in Blanket’s underground measured and indicated mineral resources to 2.178 million ounces. At its Motapa property, it has declared a maiden measured and indicated resource of 379,000 ounces, alongside a further 131,000 ounces classified as inferred resources.
The board approved a quarterly dividend of 14 US cents per share, with payment scheduled for December 11, 2026.
The Zimbabwe Mail’s assessment is that the results illustrate the importance of separating underlying operating performance from accounting movements linked to financial derivatives. Higher gold prices have strengthened revenue and margins, but sustained growth will depend on restoring production volumes, controlling unit costs and converting the company’s substantial Zimbabwean project pipeline into operating mines.
The results cover the third quarter and nine months ended September 30, 2026, and were released by Caledonia on November 12.
