Caledonia Mining profit and cash flow improve amid higher gold price

Caledonia Mining Corp PLC on Monday said it strengthened its balance sheet ‘materially’ in 2025 as higher gold prices supported increased revenue and profit.

‘The group’s performance during the year was underpinned by a higher gold price environment, providing a robust platform to execute the next phase of growth into 2026 and beyond,’ Caledonia said in a statement.

The Jersey-registered operator of the Blanket gold mine in Zimbabwe said pretax profit more than doubled to $106.6 million in 2025 from $40.5 million in 2024.

Earnings before interest, tax, depreciation and amortisation doubled to $125.3 million from $59.7 million the year before, driven by higher gold prices. Basic earnings per share tripled to $2.83 from $0.91.

Revenue increased by 46% to $267.7 million from $183.0 million in 2024, driven primarily by a significantly higher realised gold price and strong sales volumes.

The realised gold price per ounce sold for 2025 was $3,383, up 44% from $2,347 in 2024. The spot gold price has continued to rise since. It was quoted at $4,232 an ounce on Monday.

Total consolidated gold sales by Caledonia were 79,075 ounces, compared to 77,917 in 2024, with all-in-sustaining cost averaging $1,952 per ounce based, up from $1,506.

Net cash generated from operating activities increased by 82% to $76.2 million from $42.0 million. Free cash flow increased to $62.1 million from $10.6 million a year ago.

As a result, the group’s balance sheet strengthened materially during the year.

Cash and cash equivalents increased to $35.7 million at year end from $4.3 million the year prior, resulting in a net cash position of $23.8 million, compared with a net debt position of $8.7 million at the end of 2024.

‘This enhanced financial position provides the group with greater flexibility to fund its growth initiatives,’ Caledonia said.

Caledonia intends to use the current strong gold price to invest in projects at its Blanket mine to improve ‘operating resilience and contain further upward pressure on input prices’, it said.

For 2026, Caledonia expects Blanket gold production to be in the range of 72,000 to 76,500 oounces, with the quarterly production profile anticipated to be stronger in the second half of the year as higher-grade areas increasingly come on stream.

In 2025, Blanket mine produced 76,213 ounces of gold and sold 77,392.

Caledonia announced a quarterly dividend of 14 US cents, unchanged from a year ago. This takes dividends declared during the financial year to 56 US cents, the same as the year before.

Shares in Caledonia Mining were unchanged at 1,640.00 pence each in London on Monday morning.

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