Caledonia Mining Delivers Exceptional Second Quarter Results at Blanket Mine

Strategic Insights -

Caledonia Mining Corporation PLC delivered a stellar second quarter at its flagship Blanket Mine in Zimbabwe, setting new records for production, profitability, and cash generation. The company's results, highlighted by Cavendish Capital Markets, show a remarkable turnaround in profitability, with second-quarter earnings exceeding full-year profits from recent years. The Blanket Mine produced 21,100 ounces of gold in 2Q25, the highest quarterly output ever recorded, driven by improved processing efficiency and record recoveries of 94.4%.

Key Takeaways:

  • Caledonia Mining's Blanket Mine produced 21,100 ounces of gold in 2Q25, a new record high.
  • The mine achieved record recoveries of 94.4%, up from the usual 93.6%, contributing to increased production.
  • The company's second-quarter profitability exceeded full-year profits from recent years, with Cavendish Capital Markets highlighting this exceptional performance.
  • Caledonia Mining benefited from an average realised gold price of US$3,188 per ounce in the quarter, up 38% from the same period last year.
  • Revenues of US$65.3 million, gross profits of US$33.8 million, and EBITDA of US$39.5 million were all new highs for any half-year period.
  • Net profit attributable to shareholders jumped to US$20.5 million, beating the total profits reported for the full years 2022 through 2024.
  • Earnings per share surged to US$1.14, underscoring the scale of this operational and financial turnaround.
  • Unit production costs at Blanket came in at US$1,102 per ounce on-mine and an all-in sustaining cost (AISC) of US$1,793 per ounce.
  • Caledonia Mining returned to a net cash position of US$26.2 million, after being net debt nearly US$5 million just three months earlier.
  • The company is exploring upside from encouraging drill results at Blanket and its neighbouring deposits, suggesting resource expansion potential.
  • Caledonia Mining declared its customary quarterly dividend of US$0.14 per share, offering a yield of approximately 2.4%, which compares favourably to peers.
  • Cavendish has revised its valuation on Caledonia Mining, lifting the target price to [pounds]22.10 per share from [pounds]18.50.

Statistics:

  • 21,100 ounces of gold produced in 2Q25 at Blanket Mine, a new record high.
  • Average realised gold price of US$3,188 per ounce in 2Q25, up 38% from the same period last year.
  • Revenues of US$65.3 million, gross profits of US$33.8 million, and EBITDA of US$39.5 million in 2Q25, all new highs for any half-year period.
  • Net profit attributable to shareholders of US$20.5 million in 2Q25, beating the total profits reported for the full years 2022 through 2024.
  • Earnings per share of US$1.14 in 2Q25, a significant increase from previous quarters.
  • Unit production costs at Blanket of US$1,102 per ounce on-mine and an all-in sustaining cost (AISC) of US$1,793 per ounce.
  • Caledonia Mining returned to a net cash position of US$26.2 million, from nearly US$5 million net debt just three months earlier.
  • Caledonia Mining declared its customary quarterly dividend of US$0.14 per share, offering a yield of approximately 2.4%.

Sources:

  • Caledonia Mining Corporation PLC
  • Cavendish Capital Markets
  • Zimbabwean gold mining industry
  • International gold price averages