REG - Caledonia Mining Crp - 1st Quarter Results
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RNS Number : 7628D Caledonia Mining Corporation PLC 11 May 2026
Caledonia Mining Corporation Plc
(NYSE AMERICAN, AIM and VFEX: CMCL)
ABRIDGED AND UNAUDITED QUARTERLY RESULTS AND DETAILS OF MANAGEMENT CONFERENCE
CALL for the first quarter ended March 31, 2026 ("the Quarter" or "Q1 2026")
St Helier, Jersey - May 11, 2026 - Caledonia Mining Corporation Plc
("Caledonia" or "the Company" and together with its subsidiaries "the Group")
is pleased to report its financial and operating performance for the Quarter.
Summary for Quarter
The Group's financial performance in the Quarter benefited from a higher gold
price, which offset the impact of lower production.
* Revenue increased by 18.3% to US$66.43 million, compared with US$56.18 million
in the first quarter of 2025 ("Q1 2025" or the "comparative quarter"), driven
primarily by a significantly higher average realised gold price.
* Gold production and sales:
o Blanket Mine ("Blanket") produced 14,767 ounces ("oz") of gold in Q1 2026
and sold 13,372 oz, with 3,656 oz of gold bullion on hand at Quarter end.
o Consolidated gold sales (including production from the Bilboes oxide
operation) were 13,784 oz, compared to 19,388 oz in the comparative quarter.
o Production during the Quarter was adversely affected primarily by
constrained access to higher‑grade areas. This meant that although tonnes
milled were slightly higher than the comparative quarter, the head grade
reduced from 3.1g/t to 2.5g/t, resulting in a lower recovery. As a result of
the lower grade and lower recovery, gold production was reduced and cost per
ounce increased.
* Gross profit increased by 19.2% to US$32.10 million, compared to US$26.93
million in Q1 2025, reflecting improved margins due to the higher average
realised gold price.
* EBITDA increased by 50.2% to US$33.87 million, compared with US$22.55 million
in Q1 2025, representing a substantial improvement driven by higher gold
prices.
* Profit after tax increased by 69.4% to US$18.91 million, compared with
US$11.16 million in Q1 2025.
* Net cash generated from operating activities increased by 41.5% to US$18.87
million (Q1 2025: US$13.34 million).
* Unit Costs:
o Total costs, both on-mine and all in sustaining cost ("AISC") remained
largely within range; however, lower sales volumes resulted in higher on-mine
cost and AISC per oz sold due to reduced operating leverage.
o Consolidated on-mine cost averaged US$1,740/oz sold which was higher due to
the lower production volumes.
o Similarly, the AISC averaged US$2,765/oz sold, based on 13,784 oz sold.
* Free cash flow increased to US$12.28 million, compared with US$4.86 million in
Q1 2025.
* Basic earnings per share ("EPS") increased by 77.8% to US$0.80 (Q1 2025:
US$0.45), driven by higher profitability.
* Quarterly dividend: Caledonia announces today that the board of directors of
the Company (the "Board") has approved a dividend of 14 cents per share which
will be paid on June 5, 2026.
* Bilboes Gold Project: Following the publication of the Feasibility Study in
November 2025
1 (#_ftn1)
and the successful completion of the US$150 million convertible senior notes
offering in January 2026, progress continues on advancing the financing of the
Bilboes project, including both the interim facility and the broader project
finance facility, in line with the Group's previously disclosed financing
strategy.
* Blanket exploration: As announced by the Company on April 7, 2026, encouraging
deep‑level drilling results continued to demonstrate the continuity and
quality of the Blanket, Eroica and Lima orebodies at depth, supporting
confidence in the long‑term sustainability of Blanket.
OPERATING RESULTS SUMMARY
3-Months 2026 3-Months 2025 % ∆
SAFETY
Group LTIFR (per 1m hours) (a,) (e) ( ) 0.0 2.4(a) -100.0%
Group TIFR (per 1m hours)(a, f) ( ) 2.2 4.8(a) -54.3%
UNDERGROUND MINING(b)
Ore broken in tonnes (t) ('000's) 188.4 218.5 -13.8%
Ore hoisted in tonnes (t) ('000's) 191.3 211.3 -9.5%
PROCESSING(b)
Ore processed/milled (t) ('000's) 202.2 201.7 0.2%
Head/feed grade (grams/tonne) 2.5 3.1 -19.4%
Gold recovery (%) 91.9 93.6 -1.8%
Gold production (oz) 14,767 18,671 -20.9%
COSTS AND SALES
Gold sold (oz) 13,784 19,388 -28.9%
On-mine costs (US$ 000) 23,990 23,295 3.0%
On-mine costs (US$/oz sold) 1,740 1,202 44.8%
AISC (US$ 000) 38,121 34,835 9.4%
AISC (US$/oz sold) 2,765 1,797 53.9%
Average realised gold price (US$/oz) 4,816 2,896 66.3%
FINANCIALS(c)
Revenue (US$ 000) 66,433 56,178 18.3%
EBITDA (US$ 000) 33,866 22,552 50.2%
Profit after tax (US$ 000) 18,913 11,163 69.4%
Capital expenditure (US$ 000)(d) 5,278 5,765 -8.4%
Free cash-flow (US$ 000) 12,283 4,862 152.6%
Basic earnings per share ($) 0.80 0.45 77.8%
Diluted earnings per share ($) 0.80 0.45 77.8%
a. Previously reported in 200,000 man hours.
b. The production summaries above only show Blanket's results. Bilboes
oxide mine contributes marginally to the overall results; however, due to
materiality, its numbers have not been included above.
c. Refer to the financial statements' appendices at the end of this
announcement for some of the lines in the summary above.
d. The capex relates to Blanket only.
e. LTIFR - lost time injury frequency rate.
f. TIFR - total incident frequency rate.
Chief Executive Officer's Comment
Mark Learmonth, Caledonia's Chief Executive Officer, commented:
"The financial performance in the Quarter benefited from a higher gold price,
which offset the impact of lower production, with revenue increasing by 18.3%
to US$66.43 million, EBITDA rising 50.2% to US$33.87 million and free cash
flow of US$11.93 million, reflecting the benefit of higher gold prices.
"Production during the Quarter was adversely affected primarily by constrained
access to higher‑grade areas. This meant that although tonnes milled was
slightly higher than the comparative quarter, the head grade reduced from
3.1g/t to 2.5g/t, resulting in a lower recovery. As a result of the lower
grade and lower recovery, gold production was reduced and cost per ounce
increased.
"Measures to improve the grade have already been implemented: the grade has
improved month-on-month during the Quarter, and the improvement has continued
into April. As previously advised, we expect production to be weighted
towards the second half of the year and we reiterate our full‑year
production guidance at Blanket of 72,000 to 76,500 ounces.
"Encouraging deep‑level drilling results at Blanket continue to demonstrate
the continuity and quality of the orebodies at depth, reinforcing our
confidence in the long‑term future of the mine and the sustainability of the
Group's production profile.
"We continue to trade in line with market expectations and with a strong gold
price environment, improving operational performance at Blanket and continued
progress towards developing Bilboes, we remain confident in our strategy and
our ability to deliver long‑term value for shareholders."
WEBCAST
The Company will host a remote presentation for analysts and investors on its
abridged and unaudited operating and financial results for the Quarter
on Monday May 11, 2026 at 2:00pm London time, followed by an opportunity
to ask questions.
Webcast link:
https://stream.brrmedia.co.uk/broadcast/69dcf53466d5600014e43c01
(https://stream.brrmedia.co.uk/broadcast/69dcf53466d5600014e43c01)
Safety
Safety performance at Blanket remained stable during Q1 2026. Safety
performance strengthened across the board, with the TIFR dropping to 2.22,
while LTIFR improved to zero, outperforming the comparative quarter.
Management remains committed to the continued enhancement of safety
performance through sustained focus on training, auditing and risk management.
Caledonia continues to implement proactive measures to improve safety
performance, with increased near miss reporting supporting ongoing efforts to
strengthen safety awareness and engagement across the workforce. Engineering
controls have been implemented where relevant to prevent incident occurrence
and recurrence. Training, audits and fatal risk management initiatives
progressed during the Quarter, alongside emergency response drills and crisis
management exercises.
Production
During the Quarter, 180 thousand tonnes of ore were processed from underground
sources at an average head grade of 2.6 g/t delivered to the plant, with a
further 22 thousand tonnes treated from the stockpile at an average head grade
of 1.8 g/t delivered to the plant. Gold production for the Quarter was 14,767
ounces, compared with 18,671 ounces in Q1 2025.
Production in the Quarter was lower than anticipated, primarily due to lower
mined grades. This reflected the mining sequence and constrained access to
higher grade, higher volume areas. Performance during the Quarter was also
impacted by equipment availability issues and challenging ground conditions in
certain areas, which temporarily limited access to some planned ore sources.
Processing performance remained robust, with tonnes milled exceeding
expectations, partially mitigating the impact of lower grades.
These challenges are being addressed through ongoing mine development,
including the appointment of a contractor to accelerate access to higher grade
ore sources, and the implementation of a revised mine shift system, which will
increase operations from six to seven days per week. The new shift system is
expected to reduce worker fatigue and support increased ore production. In the
short term, additional ore production will be stockpiled to create a buffer of
approximately 36 thousand tonnes ahead of the planned suspension of Central
Shaft hoisting later in the year to allow for a winder system upgrade.
Milling capacity is expected to increase in mid‑2026 following the
commissioning of an additional ball mill, raising plant throughput from 97.55
tonnes per hour to 101.98 tonnes per hour. Management is also evaluating
options to increase crushing capacity to accommodate higher run‑of‑mine
tonnages.
Assay grades at Blanket improved over the period, rising from approximately
2.55 g/t in December 2025 to a peak of 3.02 g/t in March 2026, with April 2026
grades of approximately 2.86 g/t. The improvement reflects initial progress
from operational measures implemented to enhance access to higher-grade ore
and improve production consistency.
In light of these initiatives, Caledonia reiterates full‑year 2026 gold
production guidance from Blanket of 72,000 to 76,500 ounces, with production
expected to be weighted towards the second half of the year as operational
improvements take effect
Capital Expenditure and Investment for Growth Q1 2026
(US$ 000)
SUSTAINING CAPEX
Underground mine development 1,822
Engineering equipment 525
Other sustaining capex 2,931
TOTAL CAPEX(*) 5,278
(* The capex relates to Blanket only.)
Costs
On‑mine cash costs averaged US$1,740 per ounce sold during Q1 2026, compared
to US$1,202 per ounce sold in Q1 2025. The increase in unit costs primarily
reflects the lower number of ounces sold during the Quarter, which resulted in
fixed costs being spread over fewer ounces.
AISC averaged US$2,765 per ounce sold, compared to US$1,797 per ounce sold in
Q1 2025. In addition to the impact of lower production volumes, AISC was
influenced by sustaining capital expenditure and underground development
activities undertaken during the Quarter. Despite higher unit costs, margins
expanded materially due to the significantly higher realised gold price.
Management continues to focus on cost discipline and operational efficiency,
with unit costs expected to normalise as production increases and mining
transitions to higher‑grade areas in the second half of the year.
The recent geopolitical developments in the Middle East have had no impact on
the Group's operations to date. Diesel, of which the Group consumes
approximately two million litres per annum, represents less than 3% of
operating costs, and the Group has secured supplies of over one million
litres, providing substantial buffer and supply certainty. Zimbabwe sources
its fuel from both the Middle East and South Africa. Importantly, reliance on
diesel has significantly fallen over the last few years: diesel accounted for
8% of the Group's power in 2020, but has reduced to only 2% last year,
supported by around 20% of total power requirements being met by solar power.
At present the Group is selling its exported portion of gold through South
Africa (rather than the Middle East), ensuring uninterrupted revenue flows for
that portion.
These factors collectively underpin strong operational resilience despite
external geopolitical developments.
Sales
Total consolidated gold sales for the Quarter were 13,784 ounces, compared
with 19,388 ounces in Q1 2025. Sales volumes were lower primarily due to
reduced production at Blanket during the Quarter. At March 31, 2026, the Group
held 3,656 ounces of gold bullion, which will be sold in subsequent periods.
Revenue increased by 18.3% to US$66.43 million, despite lower sales volumes,
reflecting a higher average realised gold price of US$4,816 per ounce. The
strong gold price environment more than offset the impact of reduced ounces
sold, resulting in higher gross profit and improved cash generation.
Underground Mining and Processing
A slow start to the year was experienced at the underground operations with
delays in hoisting experienced at Central Shaft. Sequencing and scheduling of
the higher-grade mining areas were affected by geological conditions and
necessitated revised sequencing of the extraction methods in these areas for
improved stability and sustainability in these areas. This led to additional
development which slowed the active stoping contribution from Central Shaft.
For the Quarter, Central Shaft contributed 56% of the tonnage milled against a
planned contribution of 65%. The Number 4 Shaft production remained stable
while the surface stockpile contributed 11% of the milled tonnage, essentially
filling the gap from the Central Shaft deficit. The grade was adversely
affected as a result with the average stockpile grade of 2.0 g/t not a direct
replacement for the 9% tonnage decline from Central Shaft which operates at
above 3.0 g/t.
Looking ahead, the additional development put in place should make available
the required bulk tonnage, high-grade sources from Central Shaft to allow the
tonnage contribution from each source to stabilise. This will be supplemented
with a defined contractor development program to accelerate development in all
areas to support the required grade and tonnage contribution from each source.
Exploration and Resource Development - Blanket
In April, Caledonia was pleased to report further encouraging results from the
deep‑level drilling programme at Blanket, with the campaign continuing to
demonstrate the continuity of the main orebodies at depth. The drilling
programme is focused on evaluating the extension of the Blanket, Eroica and
Lima orebodies below the current lowest mining levels, with the objective of
increasing confidence in the existing mineral resource base and supporting
future resource growth beyond 34 Level (1,110 metres below surface).
A total of 10,312 metres of deep‑level drilling was completed between March
and December 2025. Drilling on the Blanket and Eroica orebodies returned
grades and widths that were consistent with, or better than, expectations,
including several high‑grade intersections at depth. Notably, multiple wide
and high‑grade zones were intersected within the newly identified Blanket 7
("BLK7") orebody, further demonstrating the quality and scale of
mineralisation at depth.
Drilling has also confirmed the continuation of the Lima orebody to 34 Level,
supporting the potential for further depth extensions. The Lima orebody
comprises multiple individual mineralised zones, and additional infill
drilling is planned to better define their spatial orientation and continuity.
The density and quality of drilling intersections are expected to upgrade
portions of the existing inferred mineral resources to the indicated category
or better, strengthening the resource base and supporting ongoing
life‑of‑mine planning. The results of the deep‑level drilling programme
are expected to be incorporated into an updated mineral resource and mineral
reserve statement during 2026.
Bilboes Gold Project - Our Next Mine
Bilboes represents a transformational investment opportunity for Caledonia.
The publication of the Feasibility Study in November 2025 indicates a 10.8
year life of mine with average annual production of 150 thousand ounces and a
forecast AISC of $1,061/oz. The Feasibility Study demonstrates robust project
economics stating a post-tax NPV(8%Real) of $582m and a post-tax IRR of 32.5%
at a consensus gold price at the effective date of the Feasibility Study of
$2,548/oz, and therefore there should be significantly improved economics at
current gold prices. Peak funding required is forecast to be $484m.
Funding plans for Bilboes continue to make good progress with the completion
of a convertible senior notes offering in January 2026 which raised gross
proceeds of $150m, building a solid foundation for the funding of the peak
capital requirement. It is expected that the Bilboes project will be funded
with a combination of existing cash on hand and future cash flow anticipated
from Blanket attributable to the Company over the construction period and
additional debt facilities. Discussions with domestic and international
lenders and financiers are well advanced with both the Bilboes project and the
existing Blanket operations having adequate debt capacity to meet the capital
requirements.
Once in full production, based on the Feasibility Study, Bilboes' average
annual contribution is expected to result in an approximate fourfold increase
in the Group's attributable gold production and at significantly lower
operating costs than current operating costs.
Motapa Exploration - Investing for Future Growth
Exploration work at Motapa remains ongoing, with data interpretation,
geological modelling and resource estimation activities progressing as
planned. The results from the exploration programme are on track to support a
maiden mineral resource estimate for the sulphide mineralisation at Motapa
North during 2026.
Looking ahead, US$3.8 million was allocated to Motapa's exploration as part of
the Group's 2026 growth capital programme, reflecting management's continued
commitment to disciplined investment in exploration while maintaining
financial flexibility.
Exploration activities in 2026 will focus on continued evaluation of the
near‑surface oxide potential at Mpudzi and further drilling of the Motapa
South sulphide mineralisation below historical oxide open pits. Management
believes that Motapa represents an attractive exploration opportunity within
the Group's portfolio, aligned with its long‑term growth strategy.
Funding and Liquidity
The Group's total liquidity is shown below.
Liquidity
Mar 31, 2026
(US$ 000)
Cash on hand 170,026
Bullion on hand 16,395
Gold sales receivables 2,894
TOTAL BEFORE UTILISATION OF FACILITIES 189,315
Drawn down bank facilities (8,871)
NET CASH AND LIQUID ASSETS 180,444
Undrawn bank facilities 10,629
TOTAL LIQUIDITY 191,073
Convertible senior notes
In January 2026, to support the development of the Bilboes project, the
Company completed the issuance of Convertible Senior Notes (the "Notes") due
2033 with an aggregate principal amount of $150 million, including the full
exercise of the initial purchasers' option for an additional $25 million. The
Notes carry a cash coupon of 5.875% per annum, payable semi-annually, and are
convertible at an initial price of approximately $40.51 per share,
representing a 25% premium to the prevailing market price at issuance, subject
to customary anti-dilution adjustments. To mitigate potential dilution, the
Group simultaneously entered into cash-settled capped call options with a cap
price of approximately $56.72, at a cost of $14.44 million.
The Notes were accounted for as a compound financial instrument, comprising a
host debt component measured at amortised cost and an embedded derivative
liability measured at fair value through profit or loss. Accordingly, these
components are presented separately on the statement of financial position as
follows:
Non-current asset Mar 31, 2026
US$ 000
Derivative financial asset 14,733*
Non-current liabilities
97,066
Convertible senior notes (host debt)
Derivative financial liability 38,362
*Included in this amount is US$4.43 million specifically relating to the cash
settled capped call options mentioned above, after the recognition of the fair
value loss disclosed in the table below. The remaining amount is attributable
to the Asian gold put options purchased in the prior year.
The Company recognised interest expense of US$2.70 million relating to the
Notes in the profit or loss statement for the Quarter.
Net fair value gain/(loss) on derivative financial instruments
The net fair value gain for the period arose primarily from the decrease in
the embedded derivative liability associated with the Notes and the gain from
the Asian gold put options. These instruments together reflected a combined
fair value gain of US$14.00 million. The gain was partially offset by a fair
value loss of US$10.01 million on the capped call option derivative asset,
driven by changes in market inputs during the Quarter.
Overall, the impact for the Quarter was a net fair value gain of US$4.00
million, recognised in profit or loss as set out in the table below:
Fair value movement Mar 31, 2026
US$ 000
Asian gold put options 3,401
Derivative financial liability - Notes 10,605
Derivative financial asset - Capped call options (10,011)
Net fair value gain on derivative financial instruments 3,995
The comparative quarter, Q1 2025, had a US$1.59 million fair value loss also
recognised in the profit or loss statement, relating primarily to the Asian
gold put option instruments only.
Dividend
The Board has approved a quarterly dividend of 14 United States cents
(US$0.14) on each of the Company's shares.
The relevant dates relating to the dividend are as follows:
• Ex-dividend date VFEX: May 20, 2026
• Ex-dividend date AIM and NYSE American: May 22, 2026
• Record date: May 22, 2026
• Payment date: June 5, 2026
Shareholders with a registered address in the UK will be paid in Sterling.
END NOTES
Non-GAAP measures
This announcement includes certain financial performance measures which are
non-GAAP measures. These include cash costs of production, AISC, cash and
liquid assets, and free cash flow. Management believes these measures provide
valuable additional information for users of the information to understand the
underlying trading performance. Definitions and explanation of the measures
used along with reconciliation to the nearest IFRS measures are detailed in
the Form 20-F filed on the SEC's Electronic Data Gathering, Analysis, and
Retrieval (EDGAR) system on April 23, 2026 as well as being available at
www.caledoniamining.com/investors/reports-presentations/
(http://www.caledoniamining.com/investors/reports-presentations/) .
Cash and liquid assets
Cash and liquid assets include cash, fixed-term deposits, bullion on hand,
gold sales receivables and drawn down bank facilities.
LTIFR
Lost Time Injury Frequency Rate ("LTIFR") measures how often workplace
injuries occur that result in employees missing work, normalized to hours
worked to allow comparison over time or between organisations.
TIFR
The Total Injury Frequency Rate ("TIFR") is a key safety performance indicator
that measures the frequency of all workplace injuries (including fatalities,
lost time injuries, medical treatment cases, and restricted work injuries)
relative to the total hours worked.
FOR MORE INFORMATION, please visit the website www.caledoniamining.com
(http://www.caledoniamining.com) or contact:
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)
Elfie Kent Tel: +44 20 3757 4980
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
Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services,
has reviewed and approved the scientific and technical information contained
in this news release. Craig James Harvey is a "Qualified Person" as defined by
each of (i) the Canadian Securities Administrators' National Instrument 43-101
- Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of
Regulation S-K of the U.S. Securities Act.
Note: The information contained within this announcement is deemed by the
Company to constitute inside information under 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 Information
Information and statements contained in this news release that are not
historical facts are "forward-looking information" 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 information 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
information in this news release include (but is not limited to): the
initiatives aimed at reducing worker fatigue and supporting increased ore
production, the improvements expected from the defined contractor development
program at Blanket and increasing production, Caledonia's expectations with
regard to entering into the Interim Funding Facility, raising the project
finance necessary to construct Bilboes and ensuring the Group has the
necessary financial capacity to complete the Bilboes project, expectations
with respect to costs, the situation in the Middle East, improving the
electricity situation at Blanket, as well as successful exploration at Motapa
and Blanket. The forward-looking information contained in this news release is
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
information. Such factors and assumptions include, but are not limited to:
the successful implementation of mine plans, the establishment of estimated
resources and reserves, the grade and recovery of minerals which are mined
varying from estimates, success of future exploration and drilling programs,
reliability of drilling, sampling and assay data, the representativeness of
mineralization being accurate, success of planned metallurgical test-work,
capital availability and accuracy of estimated operating costs, obtaining
required governmental, environmental or other project approvals, inflation,
changes in exchange rates, fluctuations in commodity prices, delays in the
development of projects and Caledonia's experience of project development in
Zimbabwe and other factors.
To the extent any forward-looking information herein constitutes a financial
outlook or future oriented financial information, any such statement is made
as of the date hereof and included herein to provide prospective investors
with an understanding of the Company's plans and assumptions. Security
holders, potential security holders and other prospective investors should be
aware that these 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, risks and hazards associated with the business of mineral
exploration, development and mining, risks relating to the credit worthiness
or financial condition of suppliers, refiners and other parties with whom the
Company 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 Company'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. These risks are not exhaustive. Further
information on these and other risks that could affect Caledonia's results is
included in its filings with the Securities and Exchange Commission ("SEC"),
including its Annual Report on Form 20-F for the last completed financial
year, reports on Form 6-K for the most recently completed three and six month
periods and the future reports that it may file from time to time with the
SEC. Security holders, potential security holders and other prospective
investors are cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information involves 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 undertakes no obligation to
update publicly or otherwise revise any forward-looking information whether as
a result of new information, future events or other such factors which affect
this information, except as required by law.
This news release is not an offer of the shares of Caledonia for sale in the
United States or elsewhere. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
the shares of Caledonia, in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such province, state or
jurisdiction.
Appendix A
Consolidated statements of profit or loss and other comprehensive income
(in thousands of United States Dollars, unless indicated otherwise)
Three months ended March 31,
For the 2026 2025
Unaudited
Revenue 66,433 56,178
Royalty (5,626) (2,771)
Production costs (24,820) (22,622)
Depreciation (3,886) (3,859)
Gross profit 32,101 26,926
Net foreign exchange gain/(loss) 358 (1,252)
Administrative expenses (5,050) (4,598)
Net fair value gain/(loss) on derivative financial instruments 3,995 (1,592)
Equity-settled share-based (expense)/credit (159) 144
Cash-settled share-based expense (24) (158)
Other expenses (1,302) (843)
Other income 61 66
Operating profit 29,980 18,693
Finance income 963 6
Finance cost - other (948) (900)
Finance costs - convertible senior loan note (2,699) -
Profit before tax 27,296 17,799
Tax expense (8,383) (6,636)
Profit for the year 18,913 11,163
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange (loss)/gain on translation of foreign operations (307) 207
Total comprehensive income for the year 18,606 11,370
Profit attributable to:
Owners of the Company 15,853 8,915
Non-controlling interests 3,060 2,248
Profit for the year 18,913 11,163
Total comprehensive income attributable to:
Owners of the Company 15,546 9,122
Non-controlling interests 3,060 2,248
Total comprehensive income for the year 18,606 11,370
Earnings per share
Basic earnings per share ($) 0.80 0.45
Diluted earnings per share ($) 0.80 0.45
Appendix B
Consolidated statements of financial position
(in thousands of United States Dollars, unless indicated otherwise)
Unaudited March 31, December 31,
As at 2026 2025
Assets
Exploration and evaluation assets 26,115 103,829
Property, plant and equipment 284,508 204,538
Right of use assets 922 1,089
Deferred tax asset 228 230
Derivative financial assets 14,733 7,273
Total non-current assets 326,506 316,959
Income tax receivable - 8
Inventories 28,263 26,828
Derivative financial assets 1,321 954
Trade and other receivables 9,107 11,871
Prepayments 17,934 14,537
Fixed term deposit - 5,000
Cash and cash equivalents 170,026 35,738
Total current assets 226,651 94,936
Total assets 553,157 411,895
Equity and liabilities
Share capital 166,476 166,329
Reserves 137,821 138,254
Retained loss (32,445) (45,586)
Equity attributable to shareholders of the parent 271,852 258,997
Non-controlling interests 27,609 24,549
Total equity 299,461 283,546
Liabilities
Deferred tax liabilities 51,089 51,015
Provisions 9,975 9,722
Loans and borrowings 586 1,074
Bonds 5,928 3,981
Convertible senior loan note 97,066 -
Derivative financial liabilities 38,362 -
Cash-settled share-based payment 1,352 1,294
Lease liabilities 724 911
Total non-current liabilities 205,082 67,997
Cash-settled share-based payment 1,060 1,116
Income tax payable 4,834 351
Lease liabilities 271 268
Loans and borrowings 1,745 6,706
Bonds 658 7,760
Trade and other payables 31,175 32,253
Bank overdrafts 8,871 11,898
Total current liabilities 48,614 60,352
Total liabilities 253,696 128,349
Total equity and liabilities 553,157 411,895
Appendix C
Consolidated statements of cash flows
(in thousands of United States Dollars, unless indicated otherwise)
Three months ended March 31,
Unaudited 2026 2025
Cash inflow from operations 23,493 18,709
Interest received 963 6
Finance costs paid (1,324) (543)
Tax paid (4,258) (4,831)
Net cash inflow from operating activities 18,874 13,341
Cash flows used in investing activities
Acquisition of property, plant and equipment (5,773) (7,250)
Acquisition of exploration and evaluation assets (818) (1,229)
Proceeds from sale of property, plant and equipment 22 -
Acquisition of put option instruments (5,000) (1,592)
Acquisition of capped call option instruments (14,438) -
Proceeds on maturity of fixed term deposit 5,000 -
Net cash used in investing activities (21,007) (10,071)
Cash flows from financing activities
Dividends paid (822) (1,387)
Payment of lease liabilities (74) (181)
Repayments of loans and borrowings (449) -
Repayments of bonds (6,500) -
Bond issue gross receipts 2,000 2,500
Bond issue transaction cost (17) (113)
Proceeds from convertible senior loan notes 145,100 -
Net cash from financing activities 139,238 819
Net increase in cash and cash equivalents 137,105 4,089
Effect of exchange rate fluctuations on cash and cash equivalents 210 7
Net cash and cash equivalents at the beginning of the period 23,840 (8,668)
Net cash and cash equivalents at the end of the period 161,155 (4,572)
1 (#_ftnref1) Refer to "Bilboes Gold Project Technical Report Summary" with
effective date October 31, 2025 prepared by DRA Projects (Pty) Ltd and filed
by the Company on EDGAR as an exhibit to a Form 6-K Report of Foreign Private
Issuer on November 24, 2025 (the "Feasibility Study")
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