Tax Policy Adjustment: The Zimbabwe Finance Minister announced a revision to the proposal to increase the royalty rate from 5% to 10% when gold prices exceed $2,500, now only applicable if prices exceed $5,000, thereby alleviating potential pressure on Caledonia's future earnings.
Capital Expenditure Tax Change: The proposal to spread the 100% upfront deduction for capital expenditures over the project's life has been withdrawn, meaning Caledonia will maintain its current cash flow situation, ensuring financial stability for its projects.
Withholding Tax Withdrawal: The proposal to levy a 15% withholding tax on interest payable on offshore loans has been withdrawn, which, while having little impact on existing operations, helps protect Caledonia's financing plans for the Bilboes Gold Project from potential financial burdens.
Future Outlook: Although these proposals have yet to be ratified by parliament, they are expected to be enacted before the end of the year, with Caledonia anticipating no change in the financial outlook for its portfolio of assets in Zimbabwe as long as gold prices remain below $5,000.
CMCL
$23.96+Infinity%1D
Analyst Views on CMCL
Wall Street analysts forecast CMCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMCL is 45.00 USD with a low forecast of 45.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
Wall Street analysts forecast CMCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMCL is 45.00 USD with a low forecast of 45.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 24.520
Low
45.00
Averages
45.00
High
45.00
Current: 24.520
Low
45.00
Averages
45.00
High
45.00
Maxim
Buy
maintain
$21 -> $28
2025-07-17
Reason
Maxim
Price Target
$21 -> $28
2025-07-17
maintain
Buy
Reason
Maxim raised the firm's price target on Caledonia Mining to $28 from $21 and keeps a Buy rating on the shares after its output data. The firm announced more gold production than expected in Q2 from its primary gold mine in Zimbabwe and higher 2025 gold production guidance, the analyst tells investors in a research note. Maxim believes Caledonia uses 2025 free cash flow primarily to reduce debt and to fund the dividend, the firm added.
Maxim
Tate Sullivan
Buy
maintain
$18 -> $21
2025-05-14
Reason
Maxim
Tate Sullivan
Price Target
$18 -> $21
2025-05-14
maintain
Buy
Reason
Maxim analyst Tate Sullivan raised the firm's price target on Caledonia Mining to $21 from $18 and keeps a Buy rating on the shares. The company reported Q1 revenue and EBITDA above forecasts and maintained 2025 guidance, the analyst tells investors in a research note. The firm adds that it expects Caledonia to use free cash flow to reduce debt and maintain the dividend.
About CMCL
Caledonia Mining Corporation Plc is a gold production, exploration and development company focused on Zimbabwe. The Company owns a 64% stake in the gold-producing Blanket Mine (Blanket), 100% stakes in the Bilboes mine and the Motapa and Maligreen gold mining claims, all situated in Zimbabwe. The Blanket Gold Mine is a Zimbabwean gold mine, which operates at a depth of approximately 750 meters below surface and produced approximately 55,000 ounces of gold. Blanket also holds brownfield exploration and development projects both on the existing mine area and on its satellite properties which are within trucking distance of the Blanket metallurgical recovery plant. It also holds the Motapa gold exploration property in Southern Zimbabwe. The Maligreen project is a property situated in the Gweru mining district in the Zimbabwe Midlands. The Bilboes is a large, high grade gold deposit located approximately 75 kilometers (km) north of Bulawayo, Zimbabwe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
