Caledonia Mining reports sharp rise in Q2 earnings

(Sharecast News) - Caledonia Mining reported a sharp rise in second-quarter earnings on Monday, on the back of record production at its Blanket Mine in Zimbabwe and higher gold prices, and declared a quarterly dividend of 14 US cents per share. Revenue for the three months ended June rose 30% year-on-year to $65m, with gross profit up 48% at $33.8m.

Net profit attributable to shareholders more than doubled to $20.5m from $8.3m, while adjusted earnings per share climbed to 113.9 cents from 44.6 cents.

EBITDA nearly doubled to $39.5m, boosted by an $8.5m gain on the April sale of the group's solar plant for $22.35m in cash.

Production at Blanket Mine increased 1.4% to 21,070 ounces, prompting Caledonia to raise its 2025 output guidance to between 75,500 and 79,500 ounces.

The average realised gold price was $3,188 per ounce, up 38.5% from a year earlier.

On-mine costs rose 10.9% to $1,123 per ounce, while all-in sustaining costs climbed 21.5% to $1,805 per ounce, in line with expectations due to higher input costs and planned sustaining capital expenditure.

Chief executive Mark Learmonth said the quarter reflected "record second-quarter gold production at Blanket and a substantial increase in profitability, reflecting strong operational performance and a higher gold price environment".

He added that drilling results at Blanket were "as good as and, in some cases, considerably better than results from previous drilling campaigns," and that feasibility work on the Bilboes sulphide project and exploration at Motapa were progressing well.

Operating cash flow for the quarter was $28.1m, up from $19.1m a year earlier.

The sale of the solar plant further strengthened the balance sheet, with net cash at period-end rising to $26.2m from a $1.4m net debt position a year earlier.

Caledonia said it would pay its approved quarterly dividend on 5 September to shareholders on the register as of 22 August, with UK shareholders receiving payment in sterling.

The company said its quarterly payout policy, in place since 2014, remained part of its strategy to maximise shareholder value alongside growth investment and prudent risk management.

At 1235 BST, shares in Caledonia Mining Corporaton were up 3.13%% at 1,779p.

Reporting by Josh White for Sharecast.com.