Caledonia Mining Updates Zimbabwe Tax Regime
Caledonia Mining issued an announcement regarding proposed changes to the royalty and tax regimes, as they apply to gold miners, in the Republic of Zimbabwe's 2026 National Budget. The proposed changes related inter alia to royalties and tax deductibility of capital expenditure. Caledonia noted that the Zimbabwe Minister of Finance announced certain changes to these proposals in the second reading of the 2026 National Budget to the Zimbabwe parliament, specifically; the proposal to increase the royalty rate from 5% to 10% when the gold price exceeds $2,500 per ounce will now only apply should the gold price exceed $5,000 per ounce. The proposed change to the tax treatment of capital expenditure whereby the current 100% upfront deduction would instead be spread over the life of the project, affecting the timing, but not the total amount of tax payable, has been withdrawn. The proposed change to levy withholding tax at 15% on interest payable on offshore loans has been withdrawn. Whilst this provision would have had little effect on Caledonia's existing operations, it would have had an adverse effect on the Bilboes Gold Project, which Caledonia currently expects to fund with a large proportion of offshore debt. The revised proposals, which have not yet been ratified by parliament, but are expected to be enacted before the end of the year, should result in no change in the financial outlook for Caledonia's portfolio of assets in Zimbabwe provided the gold price remains below $5,000 per ounce.
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Caledonia Mining (CMCL) Raises $150M for Bilboes Project Funding
- Record Financing: Caledonia Mining raised $150M through a seven-year convertible senior notes offering, marking the largest international capital raising in over a decade for Zimbabwe, reflecting strong market confidence in its projects.
- Project Potential: The Bilboes project is expected to become Zimbabwe's largest gold mine, with production slated to begin in late 2028 and anticipated annual output of 200K ounces starting in 2029 for an initial 10-year period, significantly enhancing the company's capacity.
- Strong Investor Demand: The bond issuance attracted over $600M in demand from high-quality North American investors, demonstrating the strength of Caledonia's strategy, asset quality, and operational track record, thereby boosting confidence in the company's future.
- Clear Strategic Positioning: The debt issuance is part of Caledonia's broader financing strategy aimed at supporting the Bilboes project, further solidifying its market position in the gold mining industry.

Caledonia Mining (CMCL) Announces $125M Convertible Notes Placement to Fund Bilboes Gold Project Development
- Financing Plan: Caledonia Mining has announced a $125 million upsized placement of convertible senior notes, primarily aimed at funding the development of the Bilboes project in Zimbabwe, which is expected to become the country's largest gold producer.
- Production Outlook: The company anticipates that gold production in 2025 will be nearly identical to 2024, with Blanket mine output at 76,213 ounces, aligning with its guidance of 75,000-79,500 ounces, although slightly down from 76,656 ounces in 2024.
- Cost Warning: For FY 2026, all-in sustaining costs are projected to be between $2,100 and $2,300 per ounce, reflecting higher direct operating costs at Blanket due to inflation and increased expenses compared to the first nine months of 2025.
- Executive Departure: COO James Mufara has left the company, which may impact operations and strategic direction, particularly during this critical phase of project development.









