Caledonia Mining sees 50% EBITDA growth led by gold price gains

Caledonia Mining Corporation PLC, the Zimbabwe-focused gold producer, lifted EBITDA by 50.2% to US$33.87 million in the first quarter of 2026 as a surging gold price more than compensated for lower output at its Blanket mine.

Revenue rose 18.3% to US$66.43 million against the same period last year, while profit after tax jumped 69.4% to US$18.91 million and free cash flow more than doubled to US$12.28 million from US$4.86 million.

The average realised gold price climbed 66.3% to US$4,816 per ounce, providing a powerful tailwind that offset a 20.9% fall in gold production to 14,767 ounces.

The shortfall in output was attributed to constrained access to higher-grade areas of the Blanket mine, which caused the head grade to drop from 3.1 grams per tonne to 2.5 grams per tonne, dragging recovery rates lower and pushing costs higher.

On-mine costs rose to US$1,740 per ounce sold, while the all-in sustaining cost (AISC), a measure of the full cost of production, averaged US$2,765 per ounce sold across consolidated sales of 13,784 ounces.

The company said measures to improve grades have already been implemented, with the numbers recovering month-on-month through the quarter and the improvement continuing into April.

Full-year production guidance at Blanket of 72,000 to 76,500 ounces was reiterated, with output expected to be weighted towards the second half of the year.

Basic earnings per share rose 77.8% to US$0.80, and the board has approved a quarterly dividend of 14 cents per share, payable on 5 June 2026.

Progress continues on financing the Bilboes gold project in Zimbabwe, including both an interim facility and a broader project finance facility, following the publication of a feasibility study in November 2025 and the completion of a US$150 million convertible senior notes offering in January 2026.

Deep-level drilling at Blanket continues to produce encouraging results, with data supporting the continuity of the Blanket, Eroica and Lima orebodies at depth.

Chief executive Mark Learmonth said the company continues to trade in line with market expectations and expressed confidence in the strategy, given a strong gold price environment, improving operational performance at Blanket and ongoing progress towards developing Bilboes.