Caledonia Mining maintains production guidance as gold grades improve

Caledonia Mining Corp PLC on Monday reported higher gold production in the second quarter compared to the first quarter, and said grades have improved steadily since January.

The operator of the Blanket gold mine in Zimbabwe reported gold production of 17,360 ounces in the second quarter to the end of June, up 18% from 14,767 ounces in the first quarter.

Caledonia Mining said grades delivered to the plant have improved steadily since January, reflecting progress in restoring access to higher-grade ore, the firm said.

The average grade in the second quarter was 2.88 grams per tonne, while the July grade to date is 3.05 grams.

Caledonia reaffirmed its 2026 production guidance of between 72,000 and 76,500 ounces.

It noted that production in the second quarter was lower than a year ago, which benefited from "exceptional grades".

"The lower performance in 2026 reflects the planned mining sequence and constrained access to higher-grade areas during the first half of the year, as previously indicated," Caledonia added.

"Encouragingly, we are now seeing improved grades in deliveries of ore to the plant, indicating that the measures we have taken to restore access to higher-grade ore are gaining traction," said Chief Executive Officer Mark Learmonth.

"With the introduction of a seven-day working week and the completion of the elution plant upgrade due in the third quarter of 2026, we expect production to further increase in the second half of the year, in line with our guidance. We therefore remain confident in our full-year production guidance for 2026."

Shares in Caledonia Mining were up 2.0% at 1,300.00 pence on Monday afternoon in London.

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