Caledonia Mining reports lower Q1 output at Zimbabwe’s Blanket mine, maintains guidance

Published: 2026-04-21 00:40:09 ET CMCL

Published on 04/21/2026 at 12:40 am EDT

Caledonia Mining Corporation (AIM:CMCL) reported gold production of 14,767oz at its Blanket mine in Zimbabwe for the first quarter of 2026, down from 18,671oz in the same period of 2025, reflecting lower grades and operational constraints.

The decline was attributed to mining sequence changes that limited access to higher-grade ore zones, alongside equipment availability issues and challenging ground conditions, the company said in a production update.

Despite the weaker start, Caledonia maintained its full-year production guidance of 72,000oz to 76,500oz, with output expected to be weighted towards the second half of the year as access to higher-grade areas improves.

Operational performance at the processing plant remained stable, with 202,217 tonnes milled during the quarter, supporting consistent throughput despite mining-related disruptions.

To address the production shortfall, the company has appointed a contractor to accelerate development and improve access to planned ore sources. It is also introducing a revised shift system that will increase operations from six to seven days a week, aimed at boosting output and reducing workforce fatigue.

Further improvements are underway at the processing plant, including expanded milling capacity following the commissioning of an additional ball mill, which is expected to support higher throughput over the coming quarters.

Management said the operational challenges encountered in the quarter are typical of deep, mature mining assets and do not affect the long-term outlook for the Blanket mine, which remains a key cash-generating asset within the group’s portfolio.

The company expects production to strengthen in the second half of 2026 and into 2027 as mining access improves and operational adjustments take effect.