London — Caledonia Mining Corporation has confirmed that Zimbabwe’s 2026 National Budget has now been formally enacted, providing greater certainty for the country’s gold mining sector and removing key fiscal risks that had concerned investors late last year.
In a statement to the market, the AIM-, NYSE American– and VFEX-listed gold producer said the final legislation aligns with its guidance issued in December, particularly on royalties linked to international gold prices. Under the enacted framework, the proposed increase in the gold royalty rate to 10% will only be triggered if the gold price rises above US$5,000 per ounce — a level well above current market prices.
This conditional structure, Caledonia noted, significantly moderates near-term cost pressures for producers operating in Zimbabwe, preserving project economics while allowing the government to capture upside revenues in the event of an exceptional gold price rally.
Crucially for the mining industry, Caledonia also confirmed that several other fiscal measures previously under consideration will not be implemented. Proposals relating to additional tax and royalty adjustments, which had been outlined in earlier budget discussions, were ultimately removed during the legislative process.
“The withdrawal of these measures reduces uncertainty around the operating and investment environment,” the company said, signalling a more predictable policy stance from Harare at a time when capital discipline and long-term planning are critical for large-scale mining projects.
From a project development perspective, Caledonia said the final budget outcome has no material impact on its forward-looking disclosures. As a result, the company does not intend to revise the Technical Report Summary for its flagship Bilboes Gold Project, which was published in November and remains fully valid under the enacted fiscal regime.
The confirmation is likely to be welcomed by investors, particularly as Zimbabwe continues efforts to position itself as a competitive destination for mining investment. Gold remains a cornerstone of the country’s export earnings, and policy stability is widely viewed as essential to unlocking further exploration and development capital.
For Caledonia, which already operates the Blanket Mine and is advancing Bilboes as a long-life, large-scale asset, the budget outcome supports continuity in strategic planning. Analysts have consistently highlighted fiscal predictability as a key determinant of valuation for Zimbabwe-focused miners, given the country’s history of abrupt policy shifts.
More broadly, the 2026 Budget appears to reflect a balancing act by authorities: safeguarding government revenues while avoiding measures that could deter investment or undermine production growth. By tying higher royalties to exceptional price levels and abandoning more aggressive tax changes, policymakers may have sent a signal of greater pragmatism to the market.
As gold prices remain volatile amid global economic uncertainty, the enacted budget provides a clearer framework within which miners and investors can assess risk, returns, and long-term opportunities in Zimbabwe’s gold sector.
