Caledonia Mining Corporation Plc has reported a record gross profit of $77.0 million for the year ended December 31, 2024, marking an 86% increase from the previous year’s $41.5 million due to the rise in gold prices and lower production costs at its Bilboes oxide mine, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to the company’s results for the year ended December 31, 2024, gross revenue climbed to $183.0 million, up from $146.3 million in 2023, driven by stronger gold prices. The net attributable profit stood at $17.9 million, a significant turnaround from the net loss of $7.9 million recorded in 2023. Operating cash flow also saw a dramatic improvement, rising to $42.0 million from $14.8 million in the previous year.
Earnings per share (EPS) saw a strong recovery, with basic IFRS EPS reaching 91.2 cents compared to a loss per share of 43.6 cents in 2023. Adjusted EPS was 125.2 cents, reflecting the company’s improved profitability.
Gold production at the flagship Blanket Mine was 76,656 ounces, slightly up from 75,416 ounces in 2023, aligning with guidance expectations. However, production at the Bilboes oxide mine declined to 1,645 ounces from 3,050 ounces in 2023 due to its placement on care and maintenance as of September 30, 2023.
Despite this, the company benefited from higher realized gold prices, which averaged $2,347 per ounce compared to $1,910 in 2023. The on-mine cost per ounce improved slightly to $1,073 from $1,097, while the all-in sustaining cost (AISC) remained stable at $1,506 per ounce.
Caledonia made notable progress in resource development, with a 63% increase in measured and indicated mineral resources and a 26% increase in inferred resources at Blanket. Encouraging exploration results at the Motapa project in November 2024 have also prompted further exploration activities in 2025.
Meanwhile, the feasibility study for the Bilboes project is ongoing, with the company exploring optimization opportunities to enhance project economics and reduce upfront capital requirements. Potential adjustments include relocating the Tailings Storage Facility and evaluating near-term revenue opportunities at Blanket to support Bilboes’ initial capital needs.
Caledonia has budgeted $41.0 million in capital investment for 2025, with $34.1 million allocated to Blanket and $6.3 million for the Bilboes and Motapa projects. The company remains focused on maintaining stable production, modernizing operations, and optimizing the Bilboes project to maximize shareholder value.
CEO Mark Learmonth expressed confidence in the company’s growth trajectory, stating, “2024 was a year of significant progress, and our financial performance benefited greatly from a higher gold price environment. We remain committed to our vision of becoming a multi-asset, Zimbabwe-focused gold producer.”
With a strong start to 2025, including 11,782 ounces of gold produced by the end of February, Caledonia appears poised for another year of expansion and financial success.
