No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Caledonia Mining reported a robust first quarter on Monday, with gold revenue rising 46% year-on-year to $56.2m, supported by higher production and a 42% increase in the average realised gold price to $2,896 per ounce.
The AIM-traded firm said gross profit nearly doubled to $26.9m, while EBITDA surged 148% to $22.6m.
Net profit attributable to shareholders climbed to $8.9m, up from $1.5m a year earlier, and adjusted earnings per share jumped over fivefold to 58.5cents.
Gold production across the Blanket and Bilboes oxide mines rose 9.3% to 19,106 ounces, although costs were higher, with all-in sustaining costs increasing 33% to $1,797 per ounce due to one-off items.
The company reaffirmed its 2025 production guidance for Blanket Mine at 74,000 to 78,000 ounces.
Caledonia also improved its net cash position, aided by the post-period sale of its solar plant for $22.35m, bringing pro forma net cash to $18.6m.
Operationally, the company said it advanced its Bilboes feasibility study, launched a $2.8m exploration programme at Motapa, and initiated a full safety review under new operational leadership.
Caledonia contributed $11.8m in royalties and taxes to the Zimbabwean government during the quarter.
"Caledonia has delivered an exceptional first quarter with gold production up 9.3% and gross profit nearly doubling to $26.9m compared to the same period last year," noted chief executive officer Mark Learmonth.
"This strong performance demonstrates our operational resilience and ability to capitalise on favorable gold prices.
"The successful completion of the solar plant sale for $22.35m 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."
Learmonth said that as the company moved forward in 2025, it was still focused on three strategic priorities - maximising profitable production at Blanket, optimising the economics of the Bilboes project, and unlocking 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."
At 1140 BST, shares in Caledonia Mining Corporation were up 1.96% at 1,040p.
Reporting by Josh White for Sharecast.com.