REG - Caledonia Mining Crp - Blanket Mine Q4 & FY25 Production & FY26 Guidance

Caledonia MiningAnnouncement

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RNS Number : 7783O  Caledonia Mining Corporation PLC  14 January 2026

Caledonia Mining Corporation Plc

Blanket Mine Q4 and FY 2025 Production and FY 2026 Guidance

 

Blanket production meets guidance and continues to invest in growth

 

(NYSE AMERICAN, AIM and VFEX: CMCL)

St Helier, January 14 2026 - Caledonia Mining Corporation Plc ("Caledonia"
or "the Company") announces Blanket Mine ("Blanket") gold production for the
quarter ("Q4 2025") and year ("FY 2025") ended December 31, 2025.  All
production numbers are expressed on a 100 per cent basis and are subject to
final assays by the refiner. The Company also provides guidance for the year
ending December 31, 2026 ("FY 2026") in respect of production, costs and
capital expenditure for Caledonia and its group of companies (the "Group").

 

Q4 and FY2025 Highlights

 

·      FY 2025 Blanket gold production of 76,213 ounces met increased
guidance (75,500 - 79,500 ounces) and was nearly identical to the prior two
years.

·      Q4 2025 production was 17,367 ounces (fourth quarter of 2024 ("Q4
2024"): 19,841 ounces). Production in the second half of 2025 was adversely
affected by lower tonnages from higher grade areas (which is being addressed)
and interruptions in the electricity supply at the end of the quarter.

·      Milling throughput remained robust, offsetting some grade
pressure.

 

FY 2026 Guidance

 

Production:

·      Blanket gold production guidance: 72,000 - 76,500 ounces 1 
(#_ftn1) .

·      Quarterly production profile expected to be stronger in the
second half of the year as higher-grade areas increasingly come on stream.

 

Cost Guidance:

·      On-mine cash cost: US$1,500 to US$1,700 per ounce sold.

·      All-in sustaining cost ("AISC"): US$2,100 to US$2,300 per ounce
sold.

·      Cost guidance for 2026 is higher than guidance for 2025 and
actual costs incurred in the first nine months of 2025 due to:

o  Inflationary pressures on consumables and labour.

o  Higher operating costs across mining, milling, engineering, and
administration

o  Increased sustaining capital expenditure for infrastructure, equipment,
and safety.

o  Ongoing investment in business improvement, risk management, and
operational reliability.

o  Enhanced maintenance and planned equipment replacement.

 

Capital Expenditure:

 

·      Projected capital expenditure in 2026 mainly relates to
sustaining capital at Blanket and the planned commencement of the Bilboes
development project.

 

·      Total Group capital expenditure is projected to be US$162.5
million, comprising:

 

o  Sustaining Capital (US$26.6 million: Group, US$26.1 million: Blanket):

§ Underground mine development: US$7.7 million

§ Engineering (equipment, power, water/sewerage): US$4.0 million

§ Business improvement initiatives: US$3.0 million

§ Milling/processing upgrades: US$2.3 million

§ Risk management: US$2.3 million

§ Special project (mine housing development): US$2.0 million

§ Mineral resource management (exploration, drilling): US$1.9 million

§ Other projects (in various departments): US$3.4 million

 

o  Growth Capital (US$135.9 million: Group):

§ Bilboes development project: US$132 million (subject to Caledonia board
approval and funding)

§ Motapa exploration: US$3.8 million

 

 

The capital expenditure plan continues to prioritise operational reliability,
safety, and long-term value, with significant allocations for both sustaining
and growth projects, ensuring Blanket remains well-positioned for consistent
production and future growth.

 

Funding initiatives in respect of the capital requirements for the Bilboes
project are well progressed.

 

Sustaining capital expenditure may increase by approximately $11 million to
implement a long- term solution to the recurring power interruptions and poor
power quality which Blanket has experienced over several years.  These
factors have resulted in interruptions to production and elevated operating
costs due to the requirement to use stand-by diesel generators to supplement
shortfalls in power provided by the grid and the existing solar facility.
This further capital expenditure is subject to finalisation of technical
studies and financial evaluations and will be subject to approval by
Caledonia's board.

 

Cost guidance for FY 2026 reflects higher direct operating costs at Blanket
compared with the first nine months of 2025, primarily due to inflation and
increased costs in the following departments:

·    mining, where higher headcount and increased underground development
have raised costs;

·    milling and processing department, which faces higher consumable
prices and additional maintenance; and

·    engineering department, which is investing in equipment upgrades and
infrastructure reliability.

 

General and administrative expenses have increased, driven by inflation
related salary adjustments and rising compliance requirements. At the same
time, the Group continues to invest strategically in mineral resource
management, safety initiatives, and risk management programs to support
ongoing exploration, enhance operational safety, and strengthen long-term mine
planning. The capital expenditure plan continues to prioritise operational
reliability, safety, and long-term value, with significant allocations for
both sustaining and growth projects, ensuring Blanket remains well-positioned
for consistent production and future growth.

 

Mark Learmonth, Chief Executive Officer, said:

 

"We are pleased to report that Blanket has once again delivered production in
line with guidance, demonstrating the resilience and operational excellence of
our team. The FY 2026 production guidance of 72,000 - 76,500 ounces reflects
the increased consistency we are focussed on from Blanket.

 

Our FY 2026 budget reflects our commitment to sustained investment in both our
core operations and future growth. The planned capital expenditure will
support ongoing production at Blanket and advance the development of the
Bilboes project and exploration at Motapa where we see long term, value
enhancing synergies with Bilboes. We remain focused on investing in safety and
delivering long-term value for all our stakeholders."

 

 

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.

 

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

 

________

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. 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.  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.

 

 

 

 1  (#_ftnref1) Refer to "S-K 1300 Technical Report Summary on the Blanket
Gold Mine, Zimbabwe" with effective date December 31, 2023 prepared by
Caledonia and filed by the Company on EDGAR as an exhibit to its annual report
on Form 20-F on May 15, 2024; and "NI 43-101 Technical Report on the Blanket
Gold Mine, Zimbabwe" with effective date December 31, 2023 prepared by
Caledonia and filed by the Company on SEDAR+ on May 15, 2024

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