Caledonia Mining Corporation (AIM:CMCL), the Zimbabwe-focused gold producer, reported revenue of $75.9 million for the second quarter, up 16% from $65.3 million a year earlier, driven largely by a stronger realised gold price.
Blanket Mine's gold production rose 18% quarter-on-quarter to 17,360 ounces as grades improved to 2.9 grams per tonne from 2.5 grams per tonne in the first quarter, though still below the 3.4 grams per tonne achieved in the exceptionally strong second quarter of 2025.
The average realised gold price climbed 34% year-on-year to $4,259 per ounce sold but fell 12% from the preceding quarter.
Gross profit rose 16% to $39.2 million and EBITDA increased 16% to $45.8 million, the latter boosted by an $11.5 million gain on derivative revaluation.
Excluding that gain and a prior-year $8.5 million solar plant disposal gain, profit after tax rose 23% to $18.5 million.
Net cash climbed to $167.8 million, up sharply from $8.2 million a year earlier, reflecting proceeds from January's Convertible Senior Notes issue that helped fund the Bilboes project.
"Increased sustaining capital in the second half of 2026 is expected to result in production levels at Blanket from 2027 that are higher than current guidance," the company said.
Caledonia reaffirmed 2026 Blanket production guidance of 72,000 to 76,500 ounces but raised its all-in sustaining cost guidance to $2,500 to $2,700 per ounce, from $2,100 to $2,300, reflecting higher royalties and employee trust dividend costs now classified as labour expenses.
At Bilboes, engineering work has begun, with first site activity, contractor accommodation construction, expected in October.
The board declared a quarterly dividend of 14 US cents per share, with an ex-dividend date of August 21 on AIM and NYSE American and payment due September 4.
News Intelligence what this means for the company
Caledonia reported Q2 revenue of $75.9 million, up 16% year-on-year, as Blanket Mine gold output rebounded 18% quarter-on-quarter to 17,360 ounces on improved grades. The board lifted its quarterly dividend to 14 US cents per share, while net cash surged to $167.8 million—up from $8.2 million a year earlier—following the January Convertible Senior Notes issue that funded the Bilboes project, where engineering work has now begun. However, the company raised 2026 all-in sustaining cost guidance to $2,500–$2,700 per ounce from $2,100–$2,300, reflecting higher royalties and reclassified labour costs, and production guidance remains unchanged at 72,000–76,500 ounces for the year.
The dividend increase and strong cash position signal confidence in Blanket's near-term cash generation, but the 19% midpoint rise in unit costs and flat annual production guidance temper the upside. The company's assertion that increased H2 2026 capital will drive production above current guidance from 2027 onward hinges on Bilboes engineering execution and Zimbabwe's operating environment.
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