Gold miner Caledonia slides after upsized $125 mln convertible bond sale
15/01/2026 12:02
** U.S.-listed shares of gold producer Caledonia Mining CMCL.N down 10.6% premarket at $28.97 after above-target capital raise
** Caledonia early Thurs announced pricing pri
vate offering of $125 mln 5.875% 7-yr convertible bonds
** Offering size increased from $100 mln; initial conversion price of $40.51 represents 25% premium to CMCL last close
** Co expects to use net offering proceeds to develop the Bilboes gold project in Zimbabwe, and for general corporate and operational needs and working capital
** It also plans to use $12 mln of proceeds to pay the cost of capped calls, derivative transactions employed to help offset potential dilution
** Caledonia early Weds said in a production update that it planned to spend $132 mln this year on the Bilboes project
** Through Weds, CMCL up ~24% to begin 2026 for roughly $625 mln market value, per LSEG data. Shares have more than tripled over the past year
** This as spot gold XAU= extended its record-breaking rally on Weds amid geopolitical and economic uncertainties GOL/
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))