JERSEY-DOMICILED miner, Caledonia Mining Corporation, has posted a 243,8% increase in profit after tax to US$53,41 million in the nine months ended September 30, 2025, due to record gold prices.
In the prior comparative period, Caledonia posted a profit after tax of US$15,53 million.
During the period under review, the price of gold per ounce (oz) rose 47,23% to US$3 863,10, ensuring better returns for Caledonia.
This comes as gold production grew 3,6% to 58 846oz over the period under review.
Revenue for the nine months rose 42,4% to US$192,92 million compared to the same period last year.
During a media briefing held in Harare last month, Caledonia revealed that it is expected to contribute 2,5 tonnes to 2025’s national gold deliveries of over 40 tonnes.
In the miner’s third-quarter results for the period ended September 30, 2025, Caledonia chief executive officer Mark Learmonth said the yellow metal miner continued to deliver solid operational and financial results at Blanket. The mine produced 19 106 ounces of gold during the quarter.
Learmonth said maintaining “our focus on stable production and disciplined capital investment as we seek to modernise operations and improve mining efficiency at Blanket”.
- Society must change its negative perception on disability
- Entertainment galore as showbiz regains its spark
- DeMbare coach demands consistency
- A Chinese miner’s response to the raging investment question
Keep Reading
“The strong gold price environment, which increased 40% to average US$3 434 per ounce, combined with higher production, has resulted in a 52% increase in quarterly revenue and a significant uplift in free cash flow,” he said.
Caledonia’s performance led to a solid improvement in cash generation over the nine months, with free cash flow rising 394,8% to US$48,32 million from the 2024 timeframe.
The increase was enough to cater for the miner’s capital expenditure of US$22,56 million over the period, a near 40% increase from the same period last year.
Consequently, the firm had adequate cash flow heading into the current quarter.
The miner is maintaining its gold production guidance range for 2025, maintained at 75 500oz to 79 500oz.
“Due to the higher cost per ounce incurred in the first 9 months of the year, it is expected that the on-mine cost per ounce at Blanket will be in the range of US$1 150 to US$1 250/oz for the 12 months of 2025,” Caledonia said.
“AISC [all-in sustaining cost]guidance of US$1 690 to US$1 790/oz has been revised to US$1 850 to US$1 950/oz, due to the higher on-mine cost guidance, higher administration costs and the impact of higher royalties due to higher gold price.”
With the price of gold surging further since September to US$4 143,76, as of yesterday, Caledonia is poised to increase its profit after tax even further.
Caledonia is a Zimbabwe-focused exploration, development, and mining corporation that owns the local gold-producing Blanket Mine, Bilboes Mine, and the Motapa and Maligreen gold mining claims.
Blanket Mine is Caledonia’s flagship, with the firm aiming to move towards Bilboes Mine, owing to its higher production capacity within three years. It projects to produce 5 tonnes of gold annually once the mine comes online.
