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Caledonia Mining: A Deep Dive into Zimbabwe’s gold Rush
Caledonia Mining is a gold producer focused on Zimbabwe, delivering remarkable financial results in teh second quarter. The company’s net profit more than doubled to USD 20.5 million (+147%), with turnover increasing by 30% to USD 65 million, and EBITDA almost doubling. This performance is attributed to a clear strategy and record production at the Blanket Mine, benefiting from gold prices over USD 3,100/ounce. A strategic sale of a solar system for $22.35 million boosted the cash position.
Looking ahead,Caledonia Mining raised its 2025 production goal to up to 79,500 ounces,achieved a record recovery rate of 94.4%, and announced a dividend of 14 cents. The company is investing USD 17.7 million in infrastructure upgrades and planning a feasibility study for the Bilboes project by 2026,with an exploration budget of $2.8 million for Motapa deposits. While Zimbabwe presents unique challenges, Caledonia Mining’s focus on the country is proving to be a successful strategy. however, maintaining cost discipline amid potential gold price fluctuations remains a key concern.
