JERSEY-domiciled miner Caledonia Mining Corporation has increased its capital expenditure (capex) for the 2026 financial year by about 10% to US$178,9 million, after securing fresh funding earlier this year.
The miner raised approximately US$130 million from a US$150 million convertible senior notes offering, reflecting rising investor confidence amid record gold prices.
The January 2026 capex had initially been set at US$162,5 million following a strong 2025 performance, which saw cash on hand rise more than eightfold to US$35,7 million at year-end.
Net cash generated from operations increased by 82% to US$76,2 million, driven by a 46% rise in revenue to US$267,7 million.
The revenue boost came as gold prices reached a record US$4 332,59 per ounce at the end of 2025, up from US$2 690,13 in 2024.
The capex increase underscores Caledonia’s strategy to sustain production at Blanket Mine while advancing its growth pipeline, notably the Bilboes Gold Project, positioning the company for multi-mine production and long-term value creation in Zimbabwe.
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“Total group capital expenditure for FY 2026 is projected to be US$178,9 million, reflecting the group’s commitment to sustaining production at Blanket while advancing its growth pipeline,” Caledonia said in a statement attached to its fourth quarter and full year financial results for the period ended December 31, 2025.
Of the capex, US$43 million is sustaining capital, primarily focused on Blanket Mine.
The remainder is growth capital. This entails US$132,1 million for Bilboes (subject to board approval and funding) and US$3,8 million for exploration at Motapa.
The Bilboes project, set to become Caledonia’s flagship mine within three years, hosts 1,749 million ounces of proven and probable gold reserves, with an estimated annual output of five tonnes of gold.
Caledonia also plans a 34km electricity line to connect Blanket Mine to Zimbabwe’s 132Kv grid backbone. Approved at US$14,2 million, the project is expected to reduce power costs, minimise reliance on diesel generators, and increase annual gold production by roughly 1 000 ounces due to improved operational reliability. Completion is targeted for the second quarter of 2027.
In addition, the company approved US$2,2 million to convert the Central Shaft winder from alternating current to direct current operation, scheduled for December 2026/January 2027.
Caledonia’s robust 2025 performance saw profit after tax rise 193% to US$67,5 million, from US$23,1 million the previous year.
“Beyond Blanket, we advanced our organic growth strategy and made decisive progress with Bilboes, our next mine,” Caledonia chief executive officer Mark Learmonth said.
“The publication of the feasibility study confirmed our expectations that Bilboes is an attractive and robust project that has the potential to materially change our production and profit profile and at the same time provide meaningful contributions to
Zimbabwe.”
He added that post-period funding, the sale of Blanket’s solar plant, and record gold prices have strengthened the company’s balance sheet, leaving it well-positioned to fund growth.
“Looking ahead to 2026, our focus is on execution and the strategic objective of becoming a multi-mine producer,” Learmonth said.