As Zimbabwe’s mining sector continues to attract global attention, companies like Caledonia Mining stand out for their long-term commitment, operational excellence, and strategic investment in the country. At the helm of Caledonia is a seasoned professional whose journey from chartered accountancy in London to leading one of Zimbabwe’s top gold producers reflects a deep understanding of both finance and African mining dynamics.
Here is our interview with Caledonia Mining Chief Executive Officer (CEO) Mark Learmonth.
Could you briefly share with us your professional background and journey in the mining sector leading up to your appointment as CEO of Caledonia Mining?
I qualified as a chartered accountant in London in 1991, before moving into merchant/investment banking – initially in London and then in Johannesburg, mainly doing transactions in the mining sector in Africa. I joined Caledonia in June 2008, at which time Caledonia was focused on exploration for copper and cobalt in Zambia.
Over the following years, we decided to divest non-core assets and focus our efforts on gold production in Zimbabwe. I became CFO in 2014 and was appointed CEO in 2023.
Caledonia has been a consistent performer in Zimbabwe’s gold sector, particularly through Blanket Mine. What have been the key drivers of this sustained performance despite a “challenging operating environment”?
Our success is based on tight operating and financial controls and disciplined capital allocation. It helps that we have a cash-generating asset in Blanket Mine, which has allowed us to fund growth using internally generated funds. However, this did require very close attention to forecasting and spending to ensure that we never ran out of money. It is only relatively recently that we have had access to external funds such as debt or the ability to raise equity.
Regarding Zimbabwe, I would challenge the common perception that it is a difficult jurisdiction. Yes, there are difficulties such as the frequent and rapid changes in policy; the heavy administrative and bureaucratic burden, the risk of repeated foreign exchange losses and inadequate access to dollars. Electricity is a problem, but electricity is also a significant problem in other jurisdictions, and the Zimbabwe government has been more flexible than most in facilitating private-sector solutions. In other respects, Zimbabwe is markedly less difficult than other jurisdictions: there is a plentiful supply of well-educated, highly-experienced, hard-working labour; the country is stable from a security perspective; consumables can be procured either locally, or relatively easily in South Africa; there is no low-level corruption and, notwithstanding the frequent policy changes, government is not doctrinally opposed to commercial mining operations.
The Bilboes project has been described as potentially Zimbabwe’s biggest gold asset. Could you provide an update on its progress and its strategic importance to Caledonia’s growth plans?
Bilboes will be Zimbabwe’s largest gold project and represents a major opportunity for Caledonia. Based on the Preliminary Economic Assessment published last year, Bilboes will produce approximately 1.5 million ounces of gold over an initial 10-year life of mine. The inclusion of the neighbouring Motapa property, where we have just started exploring, could make the Bilboes project even bigger. Bilboes is a big capital project: total capital expenditure, based on the PEA, is over $400m.
To fund this project will require us to maximise our internal cash flows and to raise external debt finance so that we can minimise the amount of new equity that we need to raise. New equity funding is expensive because our share price does not fully reflect the underlying value of the business. The reasons for this disconnect reflect these broader misconceptions about Zimbabwe. It is beholden on all participants in the Zimbabwe mining sector to be more positive. To minimise the dilution of our existing shareholders, our approach is to build value through disciplined growth. We are working hard to optimise the economics of the project and to reduce the up-front funding requirement.
We are also considering some near-term revenue opportunities elsewhere in our portfolio, which may increase our own internally generated equity contribution to the project. A project as big as Bilboes, if successful, would be transformational for Caledonia. It would also be transformational for Zimbabwe, not just in terms of contribution to the economy and broader stakeholders, etc, but also by forcing international investors to revisit and reconsider their misperceptions about Zimbabwe. This could result in more capital being available at a lower price to advance other projects in Zimbabwe.
ESG (Environmental, Social, and Governance) has become a central focus in global mining. How is Caledonia integrating ESG principles into its operations in Zimbabwe?
ESG is fully integrated into our operating model – we will shortly publish our 2024 ESG report, which provides ample information on this, where you see we do an enormous amount. Whether it’s a computer lab at Sitezi Secondary School, our support for local health clinics, or our investments in renewable energy, we are committed to making a tangible and positive impact. ESG is very much part of our core principles and something we take very seriously. In Zimbabwe, social impact can be profound, and our ESG commitments are not only a reflection of our values but also a business imperative for long-term sustainability.
With the recent appointment of Mr. Ross Jerrard as CFO, what strategic focus or operational improvements should stakeholders expect as Caledonia enters its next growth phase?
We are delighted that Ross has joined us. He was previously the CFO at Centamin, which accomplished in Egypt what we hope to achieve in Zimbabwe i.e. build and operate a world-class gold mine in a previously unfashionable, overlooked jurisdiction. However, Ross is just the latest addition to an excellent management team at Caledonia and at Blanket, which includes Mr James Mufara who joined us as COO in May last year. They are great recent additions to the team, but I would highlight that we already had very good-calibre individuals across many of our functions. Caledonia’s senior management is focused on improving operating efficiencies across the entire business as well as implementing our growth strategy.
The commissioning of the Central Shaft at Blanket Mine was a significant milestone. How has this impacted production capacity, operational efficiencies, and the overall outlook for Blanket Mine?
The commissioning of the Central Shaft has been transformative for Blanket Mine and allowed us to increase production from approximately 40,000 ounces to about 75- 80,000 ounces per annum. More importantly, Central Shaft has also given us the operational flexibility to restart deep-level exploration at Blanket. Last year we doubled Blanket’s reserves, after which Blanket’s mine life was extended out to 2041. Exploration continues at Blanket – at depth, in the shallower areas of the existing mine footprint and on other areas within Blanket’s lease area that are not currently being mined. I am confident that Blanket can maintain production at the current level for many decades to come. Depending on exploration success, it may be possible to increase Blanket’s production above 80,000 ounces per annum.
How do you view Zimbabwe’s gold mining sector evolving over the next 3 to 5 years, and what role do you envision Caledonia playing in this transformation?
Zimbabwe’s gold industry has been starved of capital for many decades: notwithstanding the current high gold price, many of Zimbabwe’s gold mines are struggling to survive due to a lack of historic investment. Large amounts of capital – hundreds of millions of dollars – are needed to recapitalise the industry and to fund new projects. Caledonia has already demonstrated that Zimbabwe can attract meaningful investment. In fact, we’ve raised more equity on the VFEX than on the NYSE. But this is not enough. International gold investors recognise that Zimbabwe has massive potential for world-class gold projects; it is also helpful that many other African Jurisdictions that were previously favoured by investors are now regarded as being unattractive. Zimbabwe could turn this situation to its advantage with a few policy initiatives – the most important of which is the liberalisation of the foreign exchange market. Investors will continue to be cautious about investing dollars into Zimbabwean projects if they are not confident they will get a dollar-denominated return. It’s basically a global competition. Mining companies have choices, and Zimbabwe must compete globally for discretionary investment. With the right reforms, Zimbabwe has every opportunity to emerge as a preferred mining jurisdiction, particularly as investors grow wary of instability elsewhere on the continent.
Finally, what message would you like to share with stakeholders and delegates attending the Chamber of Mines Annual Mining Conference and Exhibition regarding Caledonia’s commitment to Zimbabwe and the mining industry at large?
Caledonia is fully committed to Zimbabwe. All our projects are in Zimbabwe, 100% of our employees at Blanket Mine are Zimbabweans, we have increased the representation of Zimbabweans in the senior management team and on our Board and an increasing proportion of Caledonia’s shares are owned by Zimbabweans. Over the last 10-12 years we have demonstrated a commitment to share the benefits of our success with all stakeholders: 34% of Blanket mine is owned by Zimbabweans, including the government, the Gwanda community and Blanket’s employees. We are excited at the prospects to grow Caledonia’s business in Zimbabwe – for the benefit of all stakeholders.
Since we acquired Blanket in 2006, we have proven that responsible, long-term investment in Zimbabwe is possible. We now want to build on that foundation. I see strong growth for Caledonia and the wider industry. I believe that Zimbabwe and the Zimbabwe gold industry in particular has a unique opportunity to take advantage of current conditions – it requires a constructive and coordinated approach by the industry and government to unlock this opportunity.
This interview first appeared in the Mining Zimbabwe Magazine edition 70, which was first distributed at the 2025 Chamber of Mines Annual Mining Conference and Exhibition
