Caledonia Mining Corporation Plc reported a 10.5% increase in third-quarter revenue to US$78.9 million, buoyed by strong gold prices, even as operational challenges at its Blanket Mine in Zimbabwe weighed on production during the period.
In its results for the quarter ended September 30, 2026, the company said revenue rose from US$71.4 million recorded in the comparable period last year, driven mainly by a higher average realised gold price of US$4,134 per ounce, up from US$3,434 per ounce in the third quarter of 2025. Gross profit increased 13.6% to US$41.9 million from US$36.8 million.
However, gold production at Blanket Mine fell 11% to 17,030 ounces compared to 19,106 ounces in the same quarter last year after a shortage of compressed air in deeper, high-grade mining areas and processing bottlenecks in the metallurgical plant reduced output. Consolidated gold sales for the group declined 8% to 19,082 ounces from 20,792 ounces.
Profit after tax dropped 39.3% to US$11.3 million from US$18.7 million, largely due to a non-cash fair value loss of US$12.9 million on derivative financial instruments linked to the company’s convertible senior notes and gold price hedge put options.
Chief Executive Officer Mark Learmonth said management had addressed the operational constraints that affected production and expected improvements in the final quarter of the year.
“While production at Blanket in the Quarter was below our expectations, the strong gold price supported higher revenue and gross profit. We have a good understanding of the operational issues that affected production and we have taken clear steps to address them, including adding compressed-air capacity at the deeper levels and increasing processing capacity to recover gold temporarily retained in the plant,” said Learmonth.
The miner said two delayed compressors were commissioned on October 31, resolving compressed-air shortages underground, while a new elution vessel installed at the processing plant has already recovered more than half of approximately 1,100 ounces of gold that had been trapped in the metallurgical circuit at quarter-end.
As a result of the weaker-than-expected production performance, Caledonia revised its 2026 Blanket Mine production guidance to between 69,000 and 72,500 ounces and raised its cost guidance.
The company nevertheless continued to advance its growth projects. On November 5, its Zimbabwean subsidiary signed a facilities agreement with a consortium of local banks to access up to US$150 million for the development of the Bilboes Gold Project, which is targeting first gold production in the fourth quarter of 2028.
“We continue to make important progress on our growth strategy. Bilboes is our immediate growth priority, with first gold targeted for the fourth quarter of 2028, and we are maintaining momentum,” Learmonth said. “The signing of the Interim Facilities Agreement enabling the Group to borrow up to US$150 million to fund the Bilboes Gold Project is an important step in providing additional financial flexibility.”
The company also highlighted a 22% increase in Blanket Mine’s underground measured and indicated mineral resources to 2.178 million ounces and reported continued exploration progress at its Motapa project, where a maiden resource estimate outlined 379,000 ounces in measured and indicated resources and a further 131,000 ounces in inferred resources.
At September 30, 2026, Caledonia reported net cash and liquid assets of US$179.1 million and total liquidity of US$196.1 million. The board declared a quarterly dividend of 14 US cents per share. 