REG - Caledonia Mining Crp - Proposed Changes to Royalty and Tax Regimes in Zim

Caledonia MiningAnnouncement

01/12/2025 07:00

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RNS Number : 6394J  Caledonia Mining Corporation PLC  01 December 2025

Caledonia Mining Corporation Plc

Proposed Changes to Royalty and Tax Regimes in Zimbabwe

 

(NYSE AMERICAN, AIM and VFEX: CMCL)

St Helier, December 1, 2025 - Caledonia Mining Corporation Plc ("Caledonia" or
"the Company") notes the proposed changes announced to the royalty and tax
regimes, as they apply to gold miners, in the Republic of Zimbabwe's 2026
National Budget presented by the Minister of Finance, the Honourable
Professor Mthuli Ncube, on November 27, 2025.

These include two proposed fiscal measures relevant to the gold sector: an
increase in the royalty rate from 5% to 10% when the gold price exceeds
US$2,500/oz (with the higher rate understood to apply to the full gold price),
and a 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.

The Company is assessing the implications of the proposed changes for its
portfolio of assets, including in particular the potential effects on the
recently announced economics of the Bilboes Gold Project.

In respect of the Caledonia group's operating mine in Zimbabwe, Blanket Mine,
the change in royalty, if implemented, would be expected to result in a lower
level of profitability and cash generation relative to current market
expectations.

Caledonia has a long-standing operating presence in Zimbabwe and continues to
engage constructively with the relevant authorities. The Company will provide
a further update once more clarity is available.

 

Enquiries:

 Caledonia Mining Corporation Plc

 Mark Learmonth                                             Tel: +44 1534 679 800

 Camilla Horsfall                                           Tel: +44 7817 841 793
 Cavendish Capital Markets Limited (Nomad and Broker)

 Adrian Hadden                                              Tel: +44 207 397 1965

 Pearl Kellie                                               Tel: +44 131 220 9775
 Camarco, Financial PR (UK)

 Gordon Poole                                               Tel: +44 20 3757 4980

 Elfie Kent
 Curate Public Relations (Zimbabwe)

 Debra Tatenda                                              Tel: +263 77802131
 IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)

 Lloyd Mlotshwa                                             Tel: +263 (242) 745 119/33/39

This announcement contains inside information which is disclosed in accordance
with the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

 

Information and statements contained in this document that are not historical
facts are "forward-looking information" or "forward-looking statements"
(collectively, "forward-looking statements") within the meaning of applicable
securities legislation that involve risks and uncertainties relating, but not
limited, to Caledonia's current expectations, intentions, plans, and beliefs.
Forward-looking statements can often be identified by forward-looking words
such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend",
"estimate", "could", "should", "may" and "will" or the negative of these terms
or similar words suggesting future outcomes, or other expectations, beliefs,
plans, objectives, assumptions, intentions or statements about future events
or performance. Examples of forward-looking statements in this document
include: whether the proposed changes to the royalty and tax regimes will in
fact occur and, if they do, that this will result in a lower level of
profitability and cash generation at Blanket Mine relative to current market
expectations. These forward-looking statements are based, in part, on
assumptions and factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially different from
those expressed or implied by forward-looking statements.

Security holders, potential security holders and prospective investors should
be aware that forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that could cause actual results to
differ materially from those suggested by the forward-looking statements. Such
factors include, but are not limited to: risks relating to estimates of
mineral reserves and mineral resources proving to be inaccurate, fluctuations
in gold price and payment terms for gold sold, risks and hazards associated
with the business of mineral exploration, development and mining (including
environmental hazards, industrial accidents, unusual or unexpected geological
or structural formations, pressures, power outages, fire, explosions,
landslides, cave-ins and flooding), risks relating to the credit worthiness or
financial condition of suppliers, refiners and other parties with whom the
group does business, inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards, employee relations, relationships with and
claims by local communities and indigenous populations, political risk, risks
related to natural disasters, terrorism, civil unrest, public health concerns
(including health epidemics or outbreaks of communicable diseases such as the
coronavirus (COVID-19)), availability and increasing costs associated with
mining inputs and labour, the speculative nature of mineral exploration and
development, including the risks of obtaining or maintaining necessary
licenses and permits, diminishing quantities or grades of mineral reserves as
mining occurs, global financial condition, the actual results of current
exploration activities, changes to conclusions of economic evaluations, and
changes in project parameters to deal with unanticipated economic or other
factors, risks of increased capital and operating costs, environmental, safety
or regulatory risks, expropriation, the Group's title to properties including
ownership thereof, increased competition in the mining industry for
properties, equipment, qualified personnel and their costs, risks relating to
the uncertainty of timing of events including targeted production rate
increase and currency fluctuations, and the other risks discussed in
Caledonia's most recent Form 20-F annual report and other filings made with
the U.S. Securities and Exchange Commission. Security holders, potential
security holders and prospective investors are cautioned not to place undue
reliance on forward-looking statements. By their nature, forward-looking
statements involve numerous assumptions, inherent risks and uncertainties,
both general and specific, that contribute to the possibility that the
predictions, forecasts, projections and various future events will not occur.
Caledonia reviews forward-looking statements for the purposes of preparing
each announcement; however, Caledonia undertakes no obligation to update
publicly or otherwise revise any forward-looking statements whether as a
result of new information, future events or other such factors which affect
these statements, except as required by law.

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