Caledonia Mining's Q2 revenue rises 16% on higher gold prices
Caledonia Mining's Q2 revenue rises 16% on higher gold prices
Overview
Gold miner's Q2 revenue rose 16% yr/yr, driven by higher gold prices and production
Basic EPS increased 28% yr/yr, reflecting improved profitability and fair value gains
Company expects stronger production in H2 2026 as mine grades and operational improvements continue
Outlook
Company reaffirms 2026 Blanket gold production guidance at 72,000-76,500 oz
2026 on-mine cost guidance raised to $1,600-$1,800/oz, AISC to $2,500-$2,700/oz
2026 group capex guidance cut to $103.3 mln from $178.9 mln due to revised project payment timing
Result Drivers
HIGHER GRADES AND PRODUCTION - Q2 gold production at Blanket Mine rose 18% from the prior quarter due to improved access to higher-grade mining areas and operational changes, per CEO Mark Learmonth
ELEVATED COSTS - On-mine and all-in sustaining costs per ounce remained high due to lower grades, increased employee benefit costs, higher royalty payments, and advisory fees for financing, according to management
COST CONTROL INITIATIVES - Cost per tonne milled was stable in Q2, reflecting efforts to reduce electricity consumption and overtime, per company statement
Company press release: ID:nRSJ8962Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $75.90 mln |
|
Q2 EBITDA |
| $45.80 mln |
|
Q2 Gross Profit |
| $39.20 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the gold peer group is "buy"
Wall Street's median 12-month price target for Caledonia Mining Corporation PLC is GBp3,250.00, about 101.2% above its August 7 closing price of GBp1,615.00
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)