Caledonia Mining Corporation has reported lower gold production from its Blanket Mine for the third quarter of 2026, prompting a downward revision of its full-year guidance.
The Jersey-registered miner said the mine produced 17,030 ounces in the quarter to September 30, down from 19,106 ounces in the same period last year. Output for the nine months to September also fell, to just over 49,158 ounces compared to nearly 58,846 ounces in 2025.
The company attributed the weaker performance to two main operational issues. Firstly, mining in the deeper, high-grade sections of the mine was constrained by inadequate compressed air supply after the delivery of four new compressors was delayed. While two units are now operational and the remaining two have been cleared from port, the shortfall impacted production in key areas.
Secondly, the commissioning of new equipment in the gravity recovery circuit, which handles nearly half of Blanket’s gold, led to about 1,100 ounces being temporarily held up in the plant. This gold is expected to be recovered from mid-October once expanded elution capacity comes online.
Looking ahead, Caledonia has lowered its production forecast for Blanket for the full year to between 69,000 and 72,500 ounces, from an earlier range of 72,000 to 76,500 ounces. This implies a stronger fourth quarter of between 19,800 and 23,300 ounces, supported by improved compressed air, the recovery of retained gold, additional ore from a seven-day shift system at the Lima satellite plant, and better access to higher-grade zones.
As a result of lower expected volumes, projected on-mine costs have been increased to between 1,700 and 1,900 US dollars per ounce, while all-in sustaining costs are now guided at 2,650 to 2,850 US dollars per ounce. Capital expenditure for the group has been trimmed to 94.3 million US dollars from 103.3 million, largely reflecting a shift in timing for spending on the 132kV power line project into 2027, rather than a cut in project scope.
Chief Executive Mark Learmonth said while third quarter production was below expectations, the mine remains cash generative and the measures being implemented should underpin a stronger final quarter and more stable performance in 2027.
