Victoria Falls Stock Exchange-listed Caledonia Mining Corporation Plc has achieved a slight production increase of 1.6% in 2024 at its flagship operation, Blanket Mine in Gwanda, Mining Zimbabwe can report.
By Rudairo Mapuranga
The company reported a total gold production of 76,656 ounces (oz), exceeding 2023’s production of 75,416 oz and meeting the annual guidance of 74,000 to 78,000 oz.
According to Caledonia CEO Mark Learmonth, the growth is attributed to strong mine activity, which resulted in a record 797,000 tonnes milled for the year, and an impressive hoisting achievement of 89,727 tonnes in December 2024, surpassing milling capacity.
He said the company also reported annual gold sales amounting to 76,271 oz, with Q4 sales reaching 17,734 oz.
“I am pleased to report that we achieved our production guidance for the year, producing 76,656 ounces of gold. In 2024, we set new records for tonnes milled and ore hoisted, positioning us well for a strong start in 2025,” he said.
Learmonth said that looking ahead to 2025, Caledonia has outlined ambitious production and investment plans. Blanket Mine’s production guidance for 2025 is between 73,500 and 77,500 oz. The company has allocated a capital expenditure budget of $41.8 million, with $34.9 million earmarked for Blanket Mine, $5.8 million for Bilboes and Motapa, and $1.1 million for various operational upgrades.
Key Investment Areas for 2025
- Blanket Development: $6.6 million to fund 4,663 meters of planned development, including an additional 590 meters to improve flexibility and access higher-grade areas.
- Efficiency Improvements: $3.4 million for energy-saving initiatives aimed at reducing costs and improving profitability.
- Operational Resilience: $4.8 million to complete the tailings storage facility, ensuring continued environmental compliance and operational safety.
- Exploration and Project Development: $5.8 million for exploration at the Motapa project and to support the feasibility study at Bilboes, scheduled for completion in Q1 2025.
According to Learmonth, Caledonia plans to further modernize operations by investing in IT upgrades and transitioning key functions to a new office in Bulawayo, creating synergies with the upcoming Bilboes sulphide project.
“We are systematically building a mid-tier, Zimbabwe-focused gold producer with multi-asset profitable production. Our strategic investments in people and technology will, in due course, drive operational efficiencies and growth,” said Learmonth.
While Blanket Mine’s production has grown, the company noted that costs have risen. On-mine costs for 2025 are expected to range between $1,050 and $1,150 per ounce, up from $950 to $1,050 per ounce in 2024. This increase reflects higher labor, HR, and IT expenses, as well as additional sustaining capital expenditure.
All-in sustaining costs (AISC) are forecasted to be between $1,690 and $1,790 per ounce, up from $1,450 to $1,550 per ounce in 2024. This rise is partly due to environmental, social, and governance (ESG) costs, with 2024 ESG expenditure totaling $1.3 million, or approximately $17 per ounce.
The Caledonia CEO said his company remains focused on securing long-term growth through continued investment in its operations. The company plans to increase its resource base and extend Blanket Mine’s life to 2034, based on current reserves. Strategic investments in Bilboes and Motapa are also expected to bolster future production.
“We are building a strong foundation for the extended operating life at Blanket Mine, while driving growth from Bilboes and Motapa. We aim to ensure sustained, profitable production while focusing on capital allocation and building per-share value for our investors,” Learmonth emphasized.
With a proven track record of performance and a clear roadmap for the future, Caledonia Mining Corporation is well-positioned to continue its growth trajectory in Zimbabwe’s gold mining sector.
