Harare, Zimbabwe – Caledonia Mining Corporation delivered a resilient financial performance in the third quarter ended September 30, 2026, posting higher revenue and gross profit despite lower gold production caused by temporary operational challenges at Blanket Mine.
Revenue for the quarter increased by 10.5% to US$78.9 million from US$71.4 million recorded during the same period last year, driven largely by a stronger average realised gold price of US$4,134 per ounce, up from US$3,434 per ounce in the comparative period. Gross profit rose 13.6% to US$41.9 million, while operating profit before non-cash fair value adjustments to derivatives improved to US$36.7 million from US$29.5 million.
Gold production at Blanket Mine declined 11% to 17,030 ounces after mining operations were affected by compressed-air shortages in key high-grade underground sections and the temporary accumulation of gold within the metallurgical processing circuit. Consolidated group gold sales fell 8% to 19,082 ounces during the quarter.
The company confirmed that the operational issues have since been resolved. Additional compressors were commissioned at the end of October, restoring air supply to deeper mining levels, while upgrades to the processing plant have enabled the recovery of gold that had been temporarily trapped in the system.
Although underlying operations remained profitable, profit after tax declined 39.3% to US$11.3 million. The decrease was largely attributed to non-cash fair value losses on derivative financial instruments linked to the company’s convertible senior notes and gold price hedging arrangements.
Caledonia also revised its 2026 production guidance for Blanket Mine to between 69,000 and 72,500 ounces, reflecting the impact of the third-quarter disruptions. On-mine cost guidance and all-in sustaining cost forecasts were similarly adjusted.
Beyond current operations, the company continued to advance its growth strategy. The Bilboes Gold Project remains Caledonia’s primary expansion focus, with first gold targeted in late 2028. During the quarter, a subsidiary secured access to up to US$150 million in financing from a consortium of Zimbabwean banks, strengthening funding flexibility for the project as construction preparations progress.
Resource growth also remained a key highlight. Blanket Mine’s measured and indicated mineral resources increased by 22% to 2.18 million ounces, while the Motapa exploration project delivered its maiden mineral resource estimate, further strengthening the group’s long-term development pipeline.
Safety performance continued to improve, with Blanket Mine recording no lost-time injuries during the quarter and extending its injury-free record to more than 500 consecutive days.
Reflecting confidence in the company’s financial position, the board approved a quarterly dividend of US14 cents per share, payable on December 11, 2026.
Chief Executive Officer Mark Learmonth said the higher gold price environment helped offset lower production volumes, while corrective measures implemented at Blanket Mine are expected to support stronger performance in the final quarter of the year. He added that continued progress at Bilboes, Motapa and Blanket reinforces the group’s long-term growth ambitions and commitment to creating sustainable shareholder value.
