Caledonia Mining boosts second-quarter production as Bilboes development progresses

Caledonia Mining (LSE:CMCL) delivered a stronger operational performance at its Blanket Mine during the second quarter of 2026, with gold production rising 18% from the previous quarter as grades recovered. Safety performance also reached a new milestone, with the operation recording 5.4 million working hours without a lost-time injury. Revenue increased 16% year-on-year to $75.9 million, benefiting from higher realised gold prices, while EBITDA and earnings per share also improved. Stronger cash generation, together with proceeds from the convertible notes issued in January, contributed to a significant strengthening of the group’s balance sheet.

Although on-mine costs per ounce increased due to lower grades and additional employee-related expenses, costs per tonne milled remained well controlled. All-in sustaining costs improved compared with the previous quarter as grades strengthened, while management maintained its 2026 production guidance for Blanket. Caledonia expects output to increase from 2027 as higher sustaining capital investment supports the mine’s future production profile.

Meanwhile, development of the Bilboes project continued to move forward, with front-end engineering activities under way and potential financing packages progressing through credit approval processes. Initial on-site construction work is currently targeted to begin in October 2026. Exploration is also adding to the company’s longer-term growth prospects, with successful work at Motapa and the identification of a new near-surface mineralised zone close to Blanket. Maiden resource estimates are expected later this year and could establish additional mining opportunities within Caledonia’s expanding Zimbabwe portfolio.

More about Caledonia Mining

Caledonia Mining Corporation is a gold producer with listings in New York, London and Zimbabwe’s VFEX. Its principal producing asset is the Blanket Mine in Zimbabwe, while its wider portfolio includes the Bilboes gold development project and the Motapa exploration prospect. The company’s strategy centres on expanding gold production in Zimbabwe while maintaining disciplined cost management and a strong focus on operational safety.