VFEX-listed miner Caledonia Mining Corporation posted a massive 467% surge in profit for the third quarter ending September 2025, driven by buoyant bullion prices and steady production at its Blanket Mine, Mining Zimbabwe can report.
By Ryan Chigoche
In the report, the miner posted a profit after tax of $18.7 million, a sharp increase from $3.3 million posted in the prior period, helping the company offset high operational costs.
The profit was in line with the topline, which jumped 52% year-on-year to $71.4 million, driven by both higher gold prices and increased sales volumes.
The miner sold 20,355 ounces of gold during the three months to the end of September, with a further 2,861 ounces held in inventory at the quarter-end and sold at the start of October.
Caledonia’s average realised gold price soared 40% to $3,434 per ounce, reflecting a broader rally in the precious metal during the period, driven by investor demand amid global economic uncertainty.
As a result, gross profit nearly doubled to $36.9 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 162% to $33.5 million.
Free cash flow improved to $5.9 million, swinging from a negative $2.4 million in the third quarter of 2024, while liquidity stood at $44.3 million, giving the company headroom for continued investment.
Commenting on the performance, Mark Learmonth, chief executive, said: “The strong gold price environment, which increased 40% to average $3,434 per ounce, combined with higher production, has resulted in a 52% increase in quarterly revenue and a significant uplift in free cash flow.”
“We continue to deliver solid operational and financial results at Blanket… maintaining our focus on stable production and disciplined capital investment as we seek to modernise operations and improve mining efficiency,” he added.
Production from Blanket totalled 19,106 ounces for the quarter, with a further 437 ounces produced and sold from Caledonia’s smaller Bilboes oxide mine, which is still in the early stages of development. A feasibility study on Bilboes is expected imminently.
The company’s consolidated on-mine cost was $1,228 per ounce, with all-in sustaining costs, a broader industry metric that includes sustaining capital expenditure, at $1,937 per ounce.
The quarter was marked by the death of a Blanket Mine employee in a secondary blasting accident in September.
Learmonth said: “The safety and well-being of our workforce remains our highest priority. We have initiated a comprehensive review of our safety procedures and training, and we are committed to ensuring that such a tragedy does not occur again.”
In governance news, Caledonia appointed July Ndlovu, a former chief executive of Anglo American’s coal division, as an independent non-executive director on 5 November.
The board declared a quarterly dividend of 14 cents per share, payable on 5 December.
What’s next? Caledonia is developing new mining areas to add to the reliable Blanket Mine. In this drive, the company is spending US$2.8 million on exploration at Motapa, with a feasibility study for Bilboes said to be imminent.
These projects, once running, could make Caledonia the biggest gold producer in the country.
