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(Sharecast News) - Caledonia Mining Corporation reported full-year 2025 gold production from its Blanket Mine of 76,213 ounces on Wednesday, meeting its upgraded guidance range of 75,500 to 79,500 ounces and broadly matching output in the prior two years.
Fourth-quarter production amounted to 17,367 ounces, down from 19,841 ounces a year earlier, after output in the second half of the year was affected by lower tonnages from higher-grade areas and power supply interruptions late in the quarter, partly offset by robust milling throughput.
Looking ahead, Caledonia guided to Blanket Mine production of between 72,000 and 76,500 ounces in 2026, with output expected to be weighted toward the second half of the year as higher-grade areas increasingly come on stream.
On-mine cash costs were forecast at between $1,500 and $1,700 per ounce sold, while all-in sustaining costs are expected to range from $2,100 to $2,300 per ounce, reflecting inflationary pressures, higher operating costs across mining, milling, engineering and administration, increased sustaining capital expenditure, and continued investment in maintenance, safety and operational reliability.
Group capital expenditure for 2026 was projected at $162.5m, comprising $26.6m of sustaining capital and $135.9m of growth capital.
Sustaining spend at Blanket would focus on underground development, engineering works, business improvement initiatives, milling upgrades, risk management and mineral resource management, while growth capital was largely earmarked for the proposed $132m Bilboes development project, subject to board approval and funding, alongside exploration at Motapa.
Caledonia said funding initiatives for Bilboes were well advanced and noted that sustaining capital expenditure could rise by around $11m if the board approved a long-term solution to persistent power interruptions at Blanket.
"We are pleased to report that Blanket has once again delivered production in line with guidance, demonstrating the resilience and operational excellence of our team," said chief executive Mark Learmonth.
"The 2026 production guidance of 72,000 to 76,500 ounces reflects the increased consistency we are focussed on from Blanket."
He added that the company's 2026 budget reflected its commitment to "sustained investment" in both its core operations and future growth.
"The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa where we see long term, value enhancing synergies with Bilboes.
"We remain focused on investing in safety and delivering long-term value for all our stakeholders."
Separately, Caledonia said chief operating officer James Mufara had left the company with immediate effect.
The miner said its operations continued to be managed by the existing executive and operating team, that its strategy remained unchanged, and that it did not currently intend to appoint a replacement chief operating officer.
At 1100 GMT, shares in Caledonia Mining Corporation were down 1.31% at 2,408p.
Reporting by Josh White for Sharecast.com.