CMCL News & Events

Caledonia Mining announced that John Kelly has notified the board of directors of the company of his intention, as part of the board's succession plan, to step down as chairman of the board with effect from the end of the annual general meeting of the shareholders of the company to be held on May 5. The board announced that July Ndlovu, currently an independent non-executive director, has offered to become the new chairman. His appointment as chairman is subject to election by the board immediately following the AGM in accordance with the annual chairman election process. An announcement of the new chairman will accompany the announcement of the results of the AGM.

Caledonia Mining announces Blanket Mine gold production for the quarter ended March 31. Summary: Quarterly gold production of 14,767 ounces, compared with 18,671 ounces produced in the first quarter of 2025. A lower quarter was anticipated reflecting mining sequence and anticipated access constraints to higher grade, higher volume areas. Production during the Quarter was also impacted by equipment availability issues and challenging ground conditions. A new mine shift system in process of being implemented which will increase mine production from six to seven days per week. Appointment of a contractor to accelerate access to higher grade ore sources. Increase in milling capacity following the commissioning of an additional ball mill in the second quarter of 2026. Caledonia remains comfortable with Blanket's full-year production guidance of 72,000 to 76,500 ounces, with Blanket's gold production expected to be weighted towards the second half of the year. Mark Learmonth, CEO, said: "Gold production in Q1 2026 was below our expectations, reflecting the lower grades mined during the Quarter; however, this is consistent with our guidance of production being weighted towards the second half of the year. Pleasingly, plant performance remained strong, with 202,217 tonnes milled and good operational availability across the processing circuit. This is an important reflection of our continued investment into the future of the processing facility. The Quarter also included several typical operating challenges associated with deep, mature mining assets, including sequencing considerations, equipment downtime and difficult ground conditions in certain areas. These factors temporarily constrained access to some planned ore sources. We are actively addressing these challenges through several practical measures, including the acceleration of mine development, supported by the appointment of a contractor, to improve access to planned ore sources. Importantly, we will be introducing a revised shift system later in the year, moving the operation to a seven-day working week, which we expect will both reduce worker fatigue and support increased ore production. Alongside these mining initiatives, we are progressing further plant improvements, including an increase in milling capacity following the commissioning of an additional ball mill. Taken together, these actions are expected to support a stronger production profile in the second half of the year and into 2027. The challenges experienced in the first quarter do not reflect the underlying quality of the orebody or the long-term fundamentals of the operation. Blanket remains a resilient, cash-generative asset, supported by a capable and committed workforce and a processing plant that continues to perform reliably and where we are growing capacity. Management's focus is on stabilising mining areas, improving equipment availability and restoring access to planned ore sources as we progress through the year."

Shares of Caledonia Mining have fallen 18.7% intra day to $26.35 following the company's announcement after the close on Wednesday night of a proposed $100M convertible senior notes offering. Caledonia said it expects proceeds from the proposed offering to help with "additional financial flexibility and enhanced options with respect to any or all of the following: developing the Bilboes gold project in Zimbabwe; and general corporate needs, ongoing operational needs and working capital requirements."

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.