• Stanbic Bank Zimbabwe and CBZ Bank appointed as co-lead arrangers for an interim funding facility of up to US$150 million to support development of the Bilboes gold project
• Funding complements a broader capital stack including gold price hedging, proceeds from a recent US$150 million convertible notes offering, and strong cash generation from the existing Blanket Mine
• Strategic timing leverages the ongoing gold bull run which enhances Blanket margins, improves project economics/IRRs, reduces payback periods, and strengthens the balance sheet

Harare- Caledonia Mining Corporation Plc has appointed Stanbic Bank Zimbabwe and CBZ Bank as co-lead arrangers for an interim funding facility of up to US$150 million, marking a significant step in the financing architecture for the Bilboes gold project. The company confirmed the facility is expected to be in place by mid-2026, subject to customary approvals, and forms part of a broader capital stack that includes a hedging programme, proceeds from a convertible notes offering and internal cash generation from Blanket Mine.

The funding update builds on Caledonia’s previous positioning of Bilboes as its next growth engine beyond Blanket. Blanket Mine has been producing in excess of 75,000 ounces per annum in recent years, providing stable operating cash flow and a low-cost production base. Bilboes, once developed at scale, is expected to materially lift group output toward a mid-tier production profile, with earlier technical studies pointing to a long-life, multi-open pit operation capable of delivering well over 150,000 ounces annually at steady state. The transition from a single-asset operator to a multi-asset producer is central to Caledonia’s rerating thesis.

The interim facility structure is strategically important. Rather than relying solely on offshore project finance, Caledonia is anchoring part of its capital raise within Zimbabwean and regional banking institutions. This local participation reduces execution risk, diversifies funding sources and aligns domestic financial institutions with the project’s success. Combined with gold price hedging and convertible instruments, the structure balances dilution, debt servicing risk and commodity price exposure at a time when bullion is trading near cyclical highs.

Financially, Caledonia enters this expansion phase from a position of relative strength. Elevated gold prices have widened operating margins at Blanket, improved free cash flow conversion and strengthened the balance sheet. Higher realized prices enhance internal funding capacity and improve project economics at Bilboes by lowering payback periods and boosting projected IRRs. In a sustained bull market, cash generation from existing production effectively subsidises development risk on new ounces.

The broader market context reinforces the strategic timing. Gold’s current bull run, underpinned by geopolitical risk, central bank accumulation and currency volatility, has compressed financing spreads and revived investor appetite for growth-stage producers. For Caledonia, locking in development capital during a high-price environment reduces funding uncertainty and positions the group to commission Bilboes into what management is betting will remain a structurally supportive gold market.

Execution risk remains tied to permitting, capital cost discipline and timeline adherence, as outlined in the company’s cautionary statement. However, if the interim facility closes as scheduled and construction momentum follows, Caledonia’s production profile could shift materially over the next three to four years. The move effectively transitions the company from a steady-state Zimbabwean operator into a growth-oriented gold producer leveraged to both domestic expansion and global bullion dynamics.

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