CALEDONIA Mining Corporation grew its liquidity position to US$191,1 million in the first quarter ended March 31, 2026, strengthening its ability to fund the ambitious Bilboes Gold Project.
The miner said improved cash position gives it greater financial flexibility as it pushes ahead with Bilboes, despite lower quarterly gold production caused by constrained access to higher-grade ore areas.
Net cash and liquid assets stood at US$180,4 million at the end of the quarter after accounting for drawn bank facilities, while cash on hand reached US$170 million.
Bullion on hand and gold sales receivables added a further US$19,3 million to liquidity. As of March 31, 2026, the group held 3 656 ounces of gold bullion earmarked for sale in subsequent periods.
The strengthened balance sheet follows the successful completion of a US$150 million convertible senior notes offering in January this year to support the Bilboes Gold Project.
“Peak funding required is forecast to be US$484 million. Funding plans for Bilboes continue to make good progress with the completion of a convertible senior notes offering in January 2026 which raised gross proceeds of US$150 million, building a solid foundation for the funding of the peak capital requirement,” Caledonia said in a statement accompanying its quarterly results.
“It is expected that the Bilboes project will be funded with a combination of existing cash on hand and future cash flow anticipated from Blanket attributable to the company over the construction period and additional debt facilities.”
Total assets rose to US$553,17 million from US$363,73 million in the comparative period, strengthening the miner’s capacity to finance expansion projects and negotiate with lenders.
“Discussions with domestic and international lenders and financiers are well advanced with both the Bilboes project and the existing Blanket operations having adequate debt capacity to meet the capital requirements,” the company said. – (The Independent)
