Caledonia Mining Corporation Plc has issued its fiscal‑year 2026 guidance, projecting Blanket Mine production of 72,000 to 76,500 ounces of gold. The range is consistent with the company’s earlier FY 2026 outlook and sits just below the upper end of the 75,500‑79,500‑ounce guidance that was set for 2025, a year in which the mine produced 76,213 ounces.
On‑mine cash costs for 2026 are expected to rise to $1,500–$1,700 per ounce, while all‑in sustaining costs (AISC) are guided at $2,100–$2,300 per ounce. The increase reflects inflationary pressures on consumables and labor, as well as higher sustaining capital expenditure required to maintain production levels and address recurring power interruptions at Blanket.
Capital spending for the year is slated at $162.5 million, of which $26.6 million is sustaining capex and $135.9 million is growth capex. The bulk of the growth allocation—$132 million—funds the Bilboes development, a project that is expected to add 200,000 ounces of gold per year from 2029 and is a key driver of Caledonia’s long‑term expansion strategy.
CEO Mark Learmonth highlighted that Blanket’s 2025 production of 76,213 ounces met the company’s upgraded guidance range and that the mine’s performance demonstrates operational resilience. He added that the company remains focused on executing the Bilboes project while managing cost inflation and power‑quality challenges that could require an additional $11 million in sustaining capex.
The guidance signals a cautious but steady outlook: production is expected to remain flat to slightly lower than the 2025 peak, costs are projected to climb, and capital investment is concentrated on a single growth catalyst. Investors will view the Bilboes development as the primary upside, while the cost increase and power‑related capex highlight ongoing operational risks.
Zimbabwe’s recent regulatory adjustments—such as the reversal of a planned royalty hike and a more favorable tax treatment for capital expenditure—provide a supportive backdrop for the company’s expansion plans, potentially easing the financial burden of the Bilboes project.
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