Caledonia maintains full-year guidance of 72,000–76,500 ounces, expects stronger second-half performance as operational initiatives take effect
Caledonia Mining Corporation Plc has announced that gold production at its Blanket Mine in Gwanda fell to 14,767 ounces in the first quarter of 2026, representing a 20.9% decrease from the 18,671 ounces produced in the first quarter of 2025, Mining Zimbabwe can report.
By Rudairo Mapuranga
The decline also marks a 15.0% drop from the fourth quarter of 2025, when Blanket produced 17,367 ounces. The Q4 2025 figure itself represented a 12.5% decrease from 19,841 ounces in the same period of 2024, underscoring a trend of operational headwinds that began in the second half of last year.
Caledonia stated that the lower quarterly result was anticipated, reflecting mining sequence and anticipated access constraints to higher-grade, higher-volume areas. Production during the quarter was also impacted by equipment availability issues and challenging ground conditions.
“The challenges experienced in the first quarter do not reflect the underlying quality of the orebody or the long-term fundamentals of the operation,” said Mark Learmonth, Chief Executive Officer of Caledonia.
Despite the weaker start to the year, the company remains comfortable with Blanket’s full-year production guidance of 72,000 to 76,500 ounces. Caledonia had previously stated in its March 23, 2026 announcement that production is expected to be weighted towards the second half of the year as operational initiatives take effect.
Several measures are being implemented to address the production constraints:
A new mine shift system, currently being implemented, will increase mine production from six to seven days per week and is expected to reduce worker fatigue while supporting increased ore production.
A contractor has been appointed to accelerate access to higher-grade ore sources, addressing the grade constraints that affected both Q4 2025 and Q1 2026.
An additional ball mill was commissioned in the second quarter of 2026, increasing milling capacity. Plant performance remained strong during the quarter, with 202,217 tonnes milled and good operational availability across the processing circuit.
“Pleasingly, plant performance remained strong, with 202,217 tonnes milled and good operational availability across the processing circuit. This is an important reflection of our continued investment in the future of the processing facility,” Learmonth noted.
The production challenges in recent quarters stand in contrast to Caledonia’s strong financial performance for the full year 2025. The company reported revenue of US$267 million, a 46% increase from the prior year, while profit after tax surged 193% to US$67.5 million. The significant profit growth was driven primarily by a higher gold price environment, with realised gold prices rising 55% to US$4,057 per ounce in Q4 2025.
Blanket produced 76,213 ounces for the full year 2025, meeting increased guidance of 75,500 to 79,500 ounces and remaining nearly identical to the prior two years.
Beyond Blanket, Caledonia continues to advance its larger-scale Bilboes gold project. In February 2026, the company appointed Stanbic Bank Zimbabwe and CBZ Bank Limited as co-lead arrangers for an interim funding facility of up to US$150 million, forming part of a four-part funding strategy to develop what will become Zimbabwe’s largest gold mine.
Once operational, Bilboes is forecast to reach a steady annual output of 200,000 ounces from 2029 for an initial period of 10 years, with first production scheduled for late 2028. The company owns 100% of Bilboes, compared to a 64% stake in Blanket Mine.
