JERSEY-DOMICILED miner, Caledonia Mining Corporation, has posted an impressive 438,23% increase in profit after tax to US$11,16 million for the quarter ended March 31, 2025, due to a growth in revenue.
The profit after tax is from a 2024 comparative of US$2,07 million.
During the period under review, Caledonia’s revenue rose to US$56,17 million from a prior year comparative of US$38,52 million.
The surge was attributed to record gold prices which, compared to the previous quarter, soared by about 40% to over US$3 000 per ounce of the yellow metal.
Caledonia is a Zimbabwe-focused exploration, development and mining corporation that owns the local gold-producing Blanket Mine, Bilboes Mine, and the Motapa and Maligreen gold mining claims.
“Caledonia has delivered an exceptional first quarter with gold production up 9,3% and gross profit nearly doubling to US$26,9 million compared to the same period last year,” chief executive officer Mark Learmonth said in a statement acompanying the financial results for the first quarter ended March 31, 2025.
“This strong performance demonstrates our operational resilience and ability to capitalise on favourable gold prices.”
As geopolitical tensions rise, investors have turned to gold as a safe haven. This has seen an increase in the price of the yellow metal.
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During the period under review, gold production at Caledonia’s Blanket Mine and Bilboes Oxides Mine of 19 106 ounces was recorded, a 9,3% increase compared to the same period in the prior year.
“The successful completion of the solar plant sale for US$22,35 million has significantly strengthened our balance sheet, positioning us well to accelerate our growth plans at Bilboes and Motapa, while investing to achieve operational improvements and efficiencies at Blanket Mine,” Learmonth said.
“As we move forward in 2025, we remain focused on three strategic priorities: maximising profitable production at Blanket, optimising the economics of the Bilboes project and unlocking the exploration potential at Motapa.
“I am confident that our disciplined approach to capital allocation and strategic growth will continue to deliver strong returns for our shareholders.”
Caledonia has set aside US$2,8 million for its Motapa exploration programme.
The production guidance at Blanket Mine for 2025 was reaffirmed at 74 000 to 78 000 ounces of gold.
Meanwhile, net cash from operating activities of US$13,3 million was recorded, up 171% from the comparable period last year of US$4,9 million.
This allowed the miner’s net cash position to improve to negative US$4,6 million from a prior year comparative of negative US$14,2 million.
“Blanket Mine produced 18 671 ounces of gold in Q1 2025, a 9,5% increase from 17 050 ounces in Q1 2024,” Caledonia said.
“The improved performance was driven by higher milled tonnage, which offset slightly lower grades. The mine remains on track to achieve its 2025 production guidance.”
Caledonia’s Bilboes Oxide Mine recorded 435 ounces of gold, up from the prior year comparative of 426 ounces.
“On-mine cost per ounce increased by 12,9% to US$1 202 (Q1 2024: US$1 065), primarily due to higher labour, power and consumables costs at Blanket Mine,” Caledonia said.
“AISC [all-in sustaining cost] rose to US$1 797 per ounce (Q1 2024:US$1 350), predominantly due to the higher on-mine cost, increased sustaining capital expenditure and administrative costs, including some one-off expenses.”
The miner reported that it continued to focus on cost control initiatives to mitigate these pressures.
Total assets rose to US$363,73 million during the quarter under review owing to a rise in what it was owed, from a US$348,36 million recorded at the end of 2024.
