Gold miner Caledonia Mining achieved a year of strong revenue, profit and cash generation, alongside continued progress on its growth strategy across the Blanket mine, and its Bilboes and Motapa projects, the company highlights in a statement of its preliminary unaudited financial and operating performance for the fourth quarter and full-year ended December 31, 2025.

The group’s performance during the year was underpinned by a higher gold price environment.

CEO Mark Learmonth highlights a record financial performance, excellent cash generation and continued strategic progress across the business for the year.

Revenue increased by 46% to $267.7-million, driven primarily by a significantly higher realised gold price and strong sales volumes.

Profit after tax rose by 193% to $67.5-million and net cash generated from operations increased by 82% to $76.2-million.  

Earnings before interest, taxes, depreciation and amortisation increased to $125.3-million, compared with $59.7-million in the prior year, representing a considerable improvement driven by higher gold prices.

Basic earnings per share increased by 211% to $2.83, driven by higher profitability.

The board has approved a dividend of $0.14 apiece, to be paid on April 17.

The group’s balance sheet strengthened materially during the year.

Cash and cash equivalents increased to $35.7-million at year-end from $4.3-million, resulting in a net cash position of $23.8-million, compared with a net debt position of $8.7-million at the end of 2024. This enhanced financial position provides the group with greater flexibility to fund its growth initiatives.

Total consolidated gold sales were 79 075 oz, compared with 77 917 oz in the previous year.

Blanket produced 76 213 oz of gold for the year, meeting the revised increased guidance, with a continued investment in exploration. The mine sold 77 392 oz, with 2 262 oz of gold bullion on hand at year-end.

“The results from our drilling programmes are highly encouraging and reinforce our confidence in the long-term future of the operation,” Learmonth informs.

Beyond Blanket, Caledonia advanced its organic growth strategy and made decisive progress with Bilboes, he indicates.

“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.”

The Bilboes oxide operation produced and sold 1 683 oz of gold during the year.

Learmonth explains that Caledonia’s investment in Motapa, which sits contiguous to Bilboes, is an important part of the group’s strategy to build a broader production and growth platform in Zimbabwe.

“Our post-period funding initiatives, together with the proceeds from the sale of the solar plant at Blanket, have significantly strengthened our balance sheet and leave us well positioned to fund growth while importantly maintaining financial flexibility,” he avers.

The group’s focus this year is on execution and the strategic objective of becoming a multi-mine producer.

It intends to use the current strong gold price to invest in projects at Blanket to improve operating resilience and contain further upward pressure on input prices.