Caledonia Mining Corporation’s net profit jumped 147% in the second quarter of 2025 to US$20.5 million from US$8.3 million in the prior comparable period last year, driven by record gold production at its Blanket Mine in Zimbabwe and a stronger gold price environment, Mining Zimbabwe can report.
By Ryan Chigoche
The production boost came as Blanket delivered 21,070 ounces of gold in Q2 2025, a 1.4% increase from 20,773 ounces in Q2 2024.
Higher grades and improved plant recoveries underpinned the growth. Reflecting this momentum, Caledonia raised its annual output guidance on July 16 to between 75,500 and 79,500 ounces, underscoring confidence in the mine’s operational performance.
This steady production growth, combined with firmer gold prices, lifted revenue 30% to US$65.0 million from US$50.1 million a year earlier.
Gross profit rose 48% to US$33.8 million, while adjusted earnings per share more than doubled to 113.9 cents from 44.6 cents, highlighting the stronger margins achieved in the quarter.
Profitability was further enhanced by a US$8.5 million one-off gain from the April sale of Caledonia’s solar plant to CrossBoundary Energy Holdings for US$22.35 million.
The transaction not only bolstered the company’s cash reserves but also secured a stable, long-term renewable energy supply for Blanket Mine, a strategic move aimed at improving operational reliability.
Reflecting on the quarter’s performance, CEO Mark Learmonth pointed to record output and a stronger balance sheet:
“Caledonia has delivered another strong quarter, highlighted by record second-quarter gold production at Blanket and a substantial increase in profitability, reflecting strong operational performance and a higher gold price environment. I would like to thank the team for their hard work and contribution. The successful sale of our solar plant in April has strengthened our balance sheet and ensures a reliable, long-term renewable energy supply for Blanket Mine.”
The stronger earnings translated into robust cash generation, with operating cash flows rising 47% to US$28.1 million.
This helped the company swing to a net cash position of US$26.2 million at the end of June, compared to a net debt of US$1.4 million a year earlier, a turnaround that reflects both higher revenues and disciplined capital management.
Even so, costs edged higher. Consolidated on-mine cost per ounce climbed 10.9% to US$1,123 due to increased labour and consumables expenses, while all-in sustaining costs rose to US$1,805 per ounce from US$1,485, in line with planned capital investments at Blanket.
Backed by its strong balance sheet and steady operational outlook, Caledonia declared a quarterly dividend of 14 US cents per share, payable to shareholders on record as of August 11, 2025.
