REG - Caledonia Mining Crp - Zimbabwe Revises Mining Tax & Royalty Plans

Caledonia MiningAnnouncement

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RNS Number : 2128M  Caledonia Mining Corporation PLC  19 December 2025

Caledonia Mining Corporation Plc

Zimbabwe government amends proposed changes to the royalty and tax regimes

 

(NYSE AMERICAN, AIM and VFEX: CMCL)

St Helier, December 19, 2025 - On December 1, 2025 Caledonia Mining
Corporation Plc ("Caledonia" or "the Company") issued an announcement
regarding proposed changes to the royalty and tax regimes, as they apply to
gold miners, in the Republic of Zimbabwe's 2026 National Budget. The proposed
changes related inter alia to royalties and tax deductibility of capital
expenditure.

Caledonia notes that, on December 17, 2025, the Zimbabwe Minister of Finance
announced certain changes to these proposals in the second reading of the 2026
National Budget to the Zimbabwe parliament, specifically;

·    The proposal to increase the royalty rate from 5% to 10% when the
gold price exceeds US$2,500 per ounce will now only apply should the gold
price exceed $5,000 per ounce.

·    The proposed 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payable, has been withdrawn.

·    The proposed change to levy withholding tax at 15% on interest
payable on offshore loans has been withdrawn. Whilst this provision would have
had little effect on Caledonia's existing operations, it would have had an
adverse effect on the Bilboes Gold Project, which Caledonia currently expects
to fund with a large proportion of offshore debt.

The revised proposals, which have not yet been ratified by parliament, but are
expected to be enacted before the end of the year, should result in no change
in the financial outlook for Caledonia's portfolio of assets in Zimbabwe
provided the gold price remains below $5,000 per ounce.

Mark Learmonth, Chief Executive Officer of Caledonia, commented:

"The 2026 National Budget of Zimbabwe is yet to be enacted into law. However,
we welcome the revised provisions announced this week which we believe
demonstrate the Government of Zimbabwe's support for the mining sector and the
development of future mining projects in the country."

 

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

 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: our expectation that the proposed changes to the royalty and tax
regimes will be enacted as set out in this document; and that, as a result, we
expect no change to the financial outlook for Caledonia's portfolio of assets
in Zimbabwe. 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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