LONDON – Caledonia Mining Corp PLC on Friday said changes to the royalty and tax regimes proposals in Zimbabwe will not alter the company’s financial outlook for its portfolio in the country.
Shares in the Zimbabwe-focused gold miner rose 9.8% on Friday in London, closing at 1,970.00 pence.
Caledonia Mining said the revised proposals, which are expected to be enacted before the end of the year, should not impact the financial outlook for its portfolio of assets in Zimbabwe.
This is provided the gold price remains below USD5,000 per ounce, the company said.
One of the proposals previously was to increase the royalty rate from 5% to 10% when the gold price exceeds USD2,500 per ounce.
Now, this will now only apply if the gold price exceeds USD5,000 per ounce.
“The 2026 National Budget of Zimbabwe is yet to be enacted into law. However, we welcome the revised provisions announced this week which we believe demonstrate the Government of Zimbabwe’s support for the mining sector and the development of future mining projects in the country,” said Chief Executive Mark Learmonth.
Source: London East
