Caledonia Mining Posts Record Profits for 2024

Oscar J. Jeke- Zim Now Reporter

Caledonia Mining has reported record-breaking profits for 2024, with gross profit soaring by 86% to US$77 million, driven by higher gold prices, increased production, and improved cost efficiency.

The company's flagship Blanket Mine produced 76,656 ounces of gold, slightly up from 75,416 ounces in 2023, meeting its annual production targets. The surge in revenue was fueled by an average gold price of US$2,347 per ounce, significantly higher than 2023’s US$1,910 per ounce. As a result, total revenue jumped from US$146.3 million in 2023 to US$183 million in 2024.

Riding on this strong performance, Caledonia has announced a further US$41 million investment in its operations, with a major portion allocated to Blanket Mine.

While Blanket remains the company’s only producing asset, Caledonia is actively developing the Bilboes and Motapa projects, which were acquired over the past three years.

The feasibility study for Bilboes, originally set for early 2025, has been extended to explore the best development and funding strategies for the large-scale project.

“Bilboes remains a highly attractive project, and we are confident that we will find the optimal development method to maximize returns for shareholders,” said CEO Mark Learmonth.

The company is also evaluating high-grade mineralization at Blanket, which could potentially support the initial capital requirements for Bilboes, offering more flexibility in financing the expansion.