Caledonia Mining Q3 revenue rises on higher gold prices, profit hit by derivatives loss

Caledonia Mining

Yesterday 07:09

Overview
Gold miner's Q3 revenue rose 10.5% yr/yr, driven by higher realized gold prices
Gross profit for Q3 increased 13.6% despite lower gold production and sales volumes
Profit after tax fell 39% due to non-cash fair value loss on derivatives

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

Result Drivers
OPERATIONAL DISRUPTIONS - Production at Blanket mine was affected by compressed air shortages and inefficiencies in the metallurgical plant, leading to lower gold output
HIGHER REALIZED GOLD PRICE - Increased average gold price offset lower sales volumes, supporting revenue and gross profit growth
COST PRESSURE - Lower sales volumes led to higher on-mine cost and AISC per ounce sold, as fixed costs were absorbed over fewer ounces

Company press release: ID:nRSL7955Ca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$78.9 mln
 
Q3 Gross Profit
 
$41.9 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 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

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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.)