Caledonia Mining Corporation is advancing plans to develop its Bilboes Gold Project in Zimbabwe, emphasizing a strategic approach to financing that combines cash-generating assets with high-potential projects to mitigate investment risks in a challenging environment, Mining Zimbabwe reports.
By Ryan Chigoche
This approach, designed to balance risk and reward, underpins the company’s plans to advance the Bilboes Gold Project, one of its most significant growth ventures in the country.
Zimbabwe’s mining sector is often considered high-risk due to factors such as regulatory uncertainty, currency volatility, power shortages, and historical disputes over mining rights. These challenges necessitate innovative financing strategies to attract investment.
Victor Gapare, Executive Director at Caledonia, elaborated on the company’s approach:
“The strategy was always to combine cash-flowing assets with a significant resource project so that when we raise capital, we have existing cash flow to support the project. By merging these assets in a high-risk jurisdiction like Zimbabwe, we could secure funding and achieve reasonable valuations. Over the past few years, we’ve also reassessed the project to reduce capital costs and explored smaller-scale versions to ensure feasibility,” Gapare said.
A board decision on the next phase of the Bilboes Project — including project design, budget approval, and the start of detailed engineering — is expected by November, with equipment orders planned for the following year.
By integrating Bilboes with cash-generating operations such as Blanket, Caledonia aims to secure financing more efficiently while protecting shareholder value.
The project is expected to significantly increase output, moving the company from 75,000–80,000 ounces of gold annually to a projected 250,000–300,000 ounces per year once the assets are fully integrated.
With cash-flowing mines like Blanket supporting the Bilboes Project, Caledonia aims to grow steadily while managing risk in Zimbabwe’s challenging mining landscape.
Through a combination of careful planning and disciplined financing, the company expects to strengthen production and deliver value for shareholders.
