Caledonia Mining Corporation plc has reduced its annual gold production forecast due to operational challenges at its Blanket mine in Zimbabwe. The company cited delays in compressor installation and processing issues as key factors. Third-quarter production dropped 10.9% to 17,030 ounces.
Operational challenges impact production
Production at the Blanket mine was disrupted by delays in installing compressors necessary for accessing deeper, higher-grade mining areas. Additionally, processing difficulties led to approximately 1,100 ounces of gold being temporarily retained within the metallurgical plant. Two additional compressors have been deployed, with two more on the way.
Revised production and cost guidance
Caledonia now anticipates fourth-quarter production of 19,800 – 23,300 ounces, aided by increased compressed air capacity and improved ore access. The company has adjusted its 2026 production forecast to 69,000 – 72,500 ounces, down from 72,000 – 76,500 ounces. Cost guidance has also been revised:
- All-in sustaining costs: US$2,650 – US$2,850 per ounce
- On-mine costs: US$1,700 – US$1,900 per ounce
- Capital expenditure: Reduced by US$9 million to US$94.3 million
“Despite the setbacks, Blanket remains a robust and cash-generative operation,” says Mark Learmonth, Chief Executive at Caledonia Mining Corporation.
