• Blanket Mine production at 76,213 ounces supported by underground development and infrastructure investment
• Bilboes feasibility confirms 1.75Moz reserve base with expected annual output of ~200,000 ounces
• Capital deployment shifts toward growth projects and power stability to support long-term production

Caledonia Mining Corporation reported gold production of 76,213 ounces at its Blanket Mine for the year ended December 2025, with output broadly in line with prior periods despite operational pressures from lower head grades and intermittent power disruptions. Ore processed increased marginally, while underground development continued to extend access to deeper mining areas.

The company indicated that production in the latter part of the year was affected by delays in accessing higher-grade zones and increased electricity supply interruptions, although these were partially offset by steady milling throughput and drawdown from stockpiles. Processing performance remained stable, with gold recovery rates maintained above 93%, while head grades declined from prior levels, reflecting the transition into new mining areas.

Capital investment at Blanket focused on sustaining operations and improving long-term reliability. The company completed a new tailings storage facility during the year and advanced underground development across multiple levels to support future production.

A key development is the planned construction of a 34km power line connecting the mine to Zimbabwe’s 132kV grid, with an approved budget of US$14.2 million. The project is expected to reduce power costs and improve supply stability, which is expected to enhance production consistency and reduce reliance on diesel generation.

Additional investment has been approved to upgrade shaft infrastructure, with expected efficiency gains from 2027. For 2026, Blanket production is expected to range between 72,000 and 76,500 ounces, with output weighted toward the second half of the year as higher-grade areas are brought into production.

Beyond Blanket, the company confirmed progress on its Bilboes gold project, where a completed feasibility study outlines proven and probable reserves of approximately 1.75 million ounces and a projected mine life of 10.8 years.

The project is expected to produce approximately 200,000 ounces of gold in its first full year of production, with initial output anticipated from 2028. Planned capital expenditure for 2026 includes approximately US$132 million allocated to Bilboes development, subject to funding and board approval.

Exploration activities at the Motapa project, located adjacent to Bilboes, are ongoing, with drilling programmes aimed at defining additional mineral resources and supporting long-term growth. The company has allocated US$3.8 million toward Motapa exploration as part of its forward capital programme.

The results place emphasis on operational continuity at Blanket and the advancement of growth projects within Zimbabwe. Production stability has been maintained through continued underground development and processing efficiency, although power supply remains a key operational variable.

The planned grid connection is expected to reduce volatility in energy supply and support more consistent output. The development of Bilboes introduces a second production centre with scale, supported by defined reserves and project economics, while Motapa provides additional resource potential within the same operating region.

The group’s production profile remains anchored on Blanket in the near term, with growth linked to the execution of Bilboes. The transition into a multi-mine structure is underway, with capital allocation directed toward infrastructure, development and exploration.

The ability to maintain production stability while advancing new projects will shape the company’s operational trajectory, with funding, infrastructure readiness and execution timelines determining the pace at which Bilboes is brought into production.