Caledonia Mining Corporation Plc (LSE:CMCL) has revised its 2026 gold production and cost guidance following a decline in third-quarter output at its Blanket Mine in Zimbabwe, citing operational constraints affecting underground mining and gold processing activities.
Gold production at Blanket totalled 17,030 ounces during the third quarter of 2026, compared with 19,106 ounces in the corresponding period last year. Production for the first nine months of the year reached 49,158 ounces.
The company attributed the lower output to compressed air shortages affecting deeper, higher-grade mining areas, alongside commissioning issues within the gravity gold recovery circuit. These processing difficulties resulted in approximately 1,100 ounces of gold being temporarily retained within the plant.
Following the production shortfall, Caledonia reduced its full-year 2026 gold production guidance to between 69,000 and 72,500 ounces.
The company also increased its cost expectations for the year, with on-mine costs now forecast at US$1,700 to US$1,900 per ounce. All-in sustaining costs (AISC) are expected to range from US$2,650 to US$2,850 per ounce.
According to management, the revised cost estimates reflect lower anticipated production volumes and expenditure associated with ongoing operational improvements at Blanket.
Caledonia said it is implementing measures intended to address the production constraints, including the installation of additional compressors and increased elution capacity. The company also plans to process accumulated ore and carbon containing previously unrecovered gold.
Management expects these measures to contribute to higher gold production during the fourth quarter and support more consistent operations in 2027.
Alongside the revised operating guidance, Caledonia has reduced its planned group capital expenditure for 2026 to US$94.3 million.
The revised investment programme includes deferring certain expenditure on the proposed 132kV power line and lowering planned spending at both Blanket and the Bilboes development project. The company said these adjustments do not change the scope of the affected projects.
Caledonia also stated that it expects internally generated cash flow to remain sufficient to support the development of Bilboes, which forms part of its longer-term production plans.
The company continues to pursue operational improvements at Blanket while progressing its development activities at Bilboes and exploration work at Motapa.
About Caledonia Mining
Caledonia Mining Corporation Plc (LSE:CMCL) is a gold mining company operating the Blanket Mine in Zimbabwe. The company is listed on NYSE American, London’s AIM market and the Victoria Falls Stock Exchange. Its activities include underground gold mining, mineral processing and exploration, alongside development projects such as Bilboes and Motapa in Zimbabwe.
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