Caledonia Mining Q3 profit drops on derivative losses

Caledonia Mining

Yesterday 07:16

Overview
Gold producer's Q3 revenue rose 10.5% yr/yr, driven by higher realized gold price
Q3 profit after tax fell 39% yr/yr, mainly due to non-cash fair value loss on derivatives
Company revised 2026 production and cost guidance downward after operational challenges in Q3

Outlook
Company revised 2026 Blanket production guidance to 69,000-72,500 oz
Company raised 2026 on-mine cost guidance to $1,700-$1,900/oz sold and AISC to $2,650-$2,850/oz sold
Caledonia reduced 2026 Group capital expenditure guidance to $94.3 mln

Result Drivers
OPERATIONAL DISRUPTIONS - Compressed air shortages and metallurgical plant inefficiencies at Blanket mine reduced gold production and sales in Q3, per company
HIGHER GOLD PRICE - Revenue and gross profit rose as higher realized gold price offset lower sales volumes, per company
COST INCREASES - Lower production volumes led to higher on-mine and all-in sustaining costs per ounce sold, as fixed costs were absorbed over fewer ounces, per company

Company press release: ID:nACSrNB3ma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Dividend
 
$0.14
 

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 GBp2,990.00, about 88.3% above its November 11 closing price of GBp1,587.50
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads
Nov 9 - Canada's Hemlo Mining Q3 revenue reaches $135.5 mln on higher-grade ore
Nov 10 - Canada's Discovery Mining Q3 revenue rises 57% on gold output, prices
Nov 9 - Barrick profit rises on higher gold prices

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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.)