Caledonia Mining Corporation Plc, a leading gold mining company in Zimbabwe, listed on several international stock exchanges, including the New York Stock Exchange, has announced a significant surge in profitability for the first quarter of 2025, driven by a combination of increased gold production and substantially higher gold prices, according to the company’s latest financial report.
In its results for the quarter ended March 31, 2025, the company reported a 9.3% increase in gold production to 19,106 ounces compared to 17,476 ounces in the same period last year, primarily driven by a strong performance at its Blanket Mine.
This increase, coupled with a 42% surge in the average realized gold price to US$2,896 per ounce (Q1 2024: US$2,040), led to a substantial improvement in financial metrics.
Gold revenue for the quarter reached US$56.2 million, a 46% increase year-over-year (US$38.5 million in Q1 2024). Gross profit nearly doubled to US$26.9 million (Q1 2024: US$13.8 million), resulting in a higher gross margin of 48% (Q1 2024: 36%).
Profitability also saw significant gains, with net profit attributable to shareholders increasing almost sixfold to US$8.9 million (Q1 2024: US$1.5 million). Adjusted earnings per share (EPS) rose sharply to 58.5 cents, up from 9.7 cents in the first quarter of 2024.
Caledonia’s financial position strengthened during the quarter. Net cash from operating activities more than doubled to US$13.3 million (Q1 2024: US$4.9 million), and the net cash position improved to negative US$4.6 million from a negative US$14.2 million at the end of Q1 2024.
The company further bolstered its cash reserves with the US$22.35 million sale of its solar plant in April 2025, resulting in a pro forma net cash position of US$18.6 million.
Operationally, Blanket Mine produced 18,671 ounces of gold, a 9.5% increase from the previous year. The Bilboes oxide mine contributed 435 ounces (Q1 2024: 426 ounces). Caledonia continues to advance its Bilboes project feasibility study, focusing on optimizing its economics.
The company also launched a US$2.8 million exploration program at its Motapa project following encouraging drilling results in 2024.
While production increased, on-mine cost per ounce rose by 12.9% to US$1,202, driven by higher labour, power, and consumables costs at Blanket Mine.
All-in sustaining cost (AISC) per ounce also increased to US$1,797, impacted by higher on-mine costs, increased sustaining capital expenditure, and someone-off administrative expenses. Caledonia stated it is focused on cost control initiatives.
Mark Learmonth, Chief Executive Officer, commented on the strong first quarter performance and the company’s strategic priorities for the remainder of 2025.
“Caledonia has delivered an exceptional first quarter with gold production up 9.3% and gross profit nearly doubling to US$26.9 million compared to the same period last year.
This strong performance demonstrates our operational resilience and ability to capitalise on favorable gold prices,” Learmonth stated.
“The successful completion of the solar plant sale for US$22.35 million has significantly strengthened our balance sheet, positioning us well to accelerate our growth plans at Bilboes and Motapa whilst investing to achieve operational improvements and efficiencies at Blanket Mine.
“As we move forward in 2025, we remain focused on three strategic priorities: maximising profitable production at Blanket, optimising the economics of the Bilboes project, and unlocking the exploration potential at Motapa.
“I am confident that our disciplined approach to capital allocation and strategic growth will continue to deliver strong returns for our shareholders.”
In terms of safety, the company highlighted the implementation of comprehensive safety improvements under the direction of the Chief Operating Officer appointed in May 2024.
Caledonia also announced several leadership changes, including the appointment of Stefan Buys and Lesley Goldwasser as independent non-executive directors, Tariro Gadzikwa as the new Audit Committee chair, and Ross Jerrard as Chief Financial Officer.
In a separate announcement, Caledonia’s board of directors approved a quarterly dividend of 14 US cents per share, payable on June 6, 2025, to shareholders of record on May 23, 2025.
The ex-dividend dates for Victoria Falls Stock Exchange, London Stock Exchange, and New York Stock Exchange are May 21 and May 23, 2025, respectively.
