Caledonia Mining Corporation Plc (AIM:CMCL) has approved the Bilboes gold project in Zimbabwe, following a comprehensive feasibility study released on 25 November 2025. The study confirms proven and probable reserves of 1.75 million ounces at a grade of 2.26 g/t and outlines a 10.8‑year life‑of‑mine plan that will deliver 1.55 million ounces of gold, with first full production slated for 2029.
The economics of the project are compelling. A post‑tax net present value of US$582 million and an internal rate of return of 32.5 % translate into a payback period of just 1.7 years. Caledonia will fund the venture primarily through non‑recourse senior debt, supplemented by equity from its Blanket Mine and flexible instruments such as royalties and streams, while keeping its quarterly dividend at US$0.14 per share.
By adding Bilboes, Caledonia will lift its attributable gold output to roughly 200,000 ounces per year, moving the company closer to mid‑tier producer status. The move signals a strategic pivot toward larger, capital‑intensive projects that can deliver higher economies of scale and a more diversified asset base beyond the Blanket Mine.
The announcement comes shortly after Caledonia reported its Q3 2025 results. Revenue rose to US$71.44 million, up 52 % from US$46.87 million a year earlier, while net income climbed to US$15.12 million from US$2.26 million. Basic EPS of US$0.77 beat consensus by US$0.02, driven by higher gold prices and disciplined cost management, even as on‑mine costs and all‑in sustaining costs (AISC) increased by 27 % and 40 % respectively due to higher electricity, labour and consumable expenses and a lower ore grade.
CEO Mark Learmonth described the Bilboes greenlight as a "defining moment" that will transform Caledonia’s production profile, while CFO Ross Gerrard highlighted the company’s ability to maintain dividend payouts and manage cash flow despite the capital intensity of the new project. Learmonth also noted that the first production year in 2029 will position the company to capture higher gold prices and improve long‑term shareholder value.
While the project offers strong upside, Caledonia acknowledges risks inherent in operating in Zimbabwe, including political stability, regulatory changes and infrastructure constraints. The company has already secured the necessary permits and is working with local authorities to mitigate these headwinds, positioning Bilboes as a cornerstone of its growth strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.