JERSEY miner, Caledonia Mining Corporation (Caledonia) has confirmed to its shareholders that no amendments are required to the Bilboes Gold Project Technical Report Summary, following the promulgation of Finance Act 2025 with a revised royalty regime.
In the 2026 National Budget, a new three-tiered gold royalty regime was proposed, whereby a US$0–US$1 200 price per ounce of the mineral will attract a 3% royalty, US$1 201–US$2 500 (5%), and US$2 501 and above (10%).
However, following a massive backlash as the government was warned this would lead to miners being disinterested in delivering more gold, the royalty regime was revised.
The revised royalties, effective January 1, 2026, in the Finance Act 2025, introduce a 3% royalty when the price is below US$1 200 per ounce of gold, 5% between US$1 200 and US$5 000, and 10% when prices exceed US$5 000.
“Caledonia announces that, further to its announcements of December 1, 2025, and December 19, 2025, the Republic of Zimbabwe’s Finance Act, 2025, has been passed, which enacts the 2026 National Budget.
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“The enacted provisions confirm the position outlined in the announcement of December 19, 2025. Specifically: The higher royalty rate of 10% will only apply if the gold price exceeds US$5,000 per ounce,” Caledonia said in a statement.
“The other proposed changes to the tax and royalty regime that were highlighted in the announcement of December 1, 2025, have been withdrawn.
“Caledonia confirms that no amendments are therefore required to the Bilboes Gold Project Technical Report Summary, which was published on November 25, 2025, as a result of the changes proposed in the Budget that were highlighted in Caledonia’s announcement of December 1, 2025.”
As previously reported, the Bilboes Gold project hosts 1,749 million ounces of proven and probable gold reserves, which will require US$584 million in development capital.
At current gold prices, the revenue potential based solely on the proven and probable reserves is nearly US$8 billion.
Caledonia is working to make this project its flagship in three years, from its current Blanket Mine, and it is projected to produce five tonnes annually.
