Caledonia Mining Corporation (AIM:CMCL), which operates the Blanket gold mine in Zimbabwe, produced 17,360 ounces in the second quarter, up 18% from 14,767 ounces in the first quarter.
The London-listed miner reaffirmed its 2026 production guidance of 72,000 to 76,500 ounces, with output weighted towards the second half of the year.
Grades delivered to the plant averaged 2.88 grams per tonne in the quarter, up from earlier in the year, and have reached 3.05 grams per tonne so far in July.
Production still trailed the equivalent period in 2025, which benefited from exceptionally high grades and set a second-quarter record, reflecting planned mining sequencing that constrained access to higher-grade areas earlier this year.
Caledonia expects further gains from a completed elution plant upgrade, due to process stockpiled fine-grain loaded carbon from September, and a seven-day working week introduced in June that adds roughly 200 tonnes per day of processed ore.
"We are now tracking a grade of approximately 3g/t and we expect to remain at that level for the rest of the year," said Mark Learmonth, chief executive officer.
The company said it remains confident in meeting its full-year guidance as these initiatives take effect through the second half of 2026.
News Intelligence what this means for the company
Blanket mine output rose 18% quarter-on-quarter to 17,360 ounces in Q2 2026 as higher-grade ore became accessible, and Caledonia reaffirmed its full-year guidance of 72,000–76,500 ounces. The company expects further production gains in H2 2026 from an elution plant upgrade (processing stockpiled carbon from September) and a seven-day working week introduced in June that adds ~200 tonnes per day of ore throughput; management now targets ~3 g/t grades for the rest of the year.
The quarter-on-quarter lift and grade recovery signal that planned mining sequencing constraints are easing, supporting confidence in full-year guidance. However, Q2 output still trailed the prior-year quarter (which hit a record on exceptionally high grades), so the investment case hinges on whether the operational initiatives—elution plant and seven-day week—deliver the expected H2 uplift to meet the 72,000–76,500 ounce target.
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