Multi-listed gold-focused miner Caledonia Mining Corporation Plc has announced that gold production at its flagship Blanket Mine in Gwanda decreased by 12.5% in the fourth quarter of 2025, driven by operational challenges, while the operation still met its robust annual target, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to the company, production for the quarter (Q4 2025) was 17,367 ounces, down from 19,841 ounces produced in the same period in 2024 (Q4 2024).
The quarterly decline was offset by strong performance earlier in the year, allowing Blanket to meet its revised annual guidance. The mine produced a total of 76,213 ounces for the full year 2025 (“FY2025”), which is nearly identical to the prior two years and within the guided range of 75,500 to 79,500 ounces.
The company attributed the Q4 decrease primarily to lower tonnage from key higher-grade areas, which is being addressed, and interruptions in the national electricity supply towards the end of the quarter. Robust milling throughput throughout the year helped mitigate some of the grade pressure experienced.
Looking ahead, Caledonia issued production and cost guidance for 2026 (“FY2026”), forecasting output between 72,000 and 76,500 ounces. The company anticipates a stronger production profile in the second half of the year as higher-grade areas increasingly come on stream.
However, cost guidance for 2026 is projected to rise due to inflationary pressures. The all-in sustaining cost (“AISC”) is expected to be between US$2,100 and US$2,300 per ounce sold, up from previous guidance, driven by higher costs for consumables, labour, and increased sustaining capital expenditure.
A significant feature of the 2026 plan is a substantial capital expenditure budget of US$162.5 million for the Group. The majority of this (US$135.9 million) is allocated as growth capital, predominantly for the advancement of the Bilboes development project (subject to board approval). A further US$26.6 million is earmarked for sustaining capital at Blanket, aimed at ensuring long-term operational reliability.
“We are pleased to report that Blanket has once again delivered production in line with annual guidance, demonstrating resilience,” said Mark Learmonth, Chief Executive Officer of Caledonia. “Our FY2026 budget reflects a commitment to sustained investment, ensuring Blanket remains well-positioned for consistent production and future growth.”
