CMCL News & Events

Shares of Caledonia Mining have fallen 18.7% intra day to $26.35 following the company's announcement after the close on Wednesday night of a proposed $100M convertible senior notes offering. Caledonia said it expects proceeds from the proposed offering to help with "additional financial flexibility and enhanced options with respect to any or all of the following: developing the Bilboes gold project in Zimbabwe; and general corporate needs, ongoing operational needs and working capital requirements."

Caledonia Mining issued an announcement regarding proposed changes to the royalty and tax regimes, as they apply to gold miners, in the Republic of Zimbabwe's 2026 National Budget. The proposed changes related inter alia to royalties and tax deductibility of capital expenditure. Caledonia noted that the Zimbabwe Minister of Finance announced certain changes to these proposals in the second reading of the 2026 National Budget to the Zimbabwe parliament, specifically; the proposal to increase the royalty rate from 5% to 10% when the gold price exceeds $2,500 per ounce will now only apply should the gold price exceed $5,000 per ounce. The proposed change to the tax treatment of capital expenditure whereby the current 100% upfront deduction would instead be spread over the life of the project, affecting the timing, but not the total amount of tax payable, has been withdrawn. The proposed change to levy withholding tax at 15% on interest payable on offshore loans has been withdrawn. Whilst this provision would have had little effect on Caledonia's existing operations, it would have had an adverse effect on the Bilboes Gold Project, which Caledonia currently expects to fund with a large proportion of offshore debt. The revised proposals, which have not yet been ratified by parliament, but are expected to be enacted before the end of the year, should result in no change in the financial outlook for Caledonia's portfolio of assets in Zimbabwe provided the gold price remains below $5,000 per ounce.

Caledonia Mining announced gold production from the Blanket Mine in Zimbabwe for the quarter ended September 30. All production numbers are expressed on a 100% basis and are based on the final assay at the refiners. Quarterly gold production of 19,106 ounces. Gold produced in the nine months to the end of September was 58,846 ounces. Caledonia reiterates its increased gold production guidance for 2025 of between 75,500 and 79,500 ounces.

Caledonia Mining reported that an accident took place on September 22 at the Blanket Mine in Zimbabwe, as a result of which one Blanket Mine employee lost his life. The accident was related to secondary blasting. Further details cannot be released pending the outcome of an enquiry into this accident by the relevant authorities.