Caledonia Mining Corporation Plc has announced plans to invest an additional $41.8 million in expanding its Zimbabwean mining operations in 2025, building on the strong performance of its flagship Blanket Mine.
The company’s decision follows Blanket Mine’s successful gold production of 76,656 ounces in 2024, slightly surpassing the 75,416 ounces produced in 2023 and meeting its annual production targets. For 2025, Caledonia projects output between 73,500 and 77,500 ounces.
In a statement on Wednesday, Caledonia CEO Mark Learmonth emphasized the strategic importance of this investment.
“These investments are critical for modernizing our operations and improving mining efficiency at Blanket. While we expect short-term cost pressures, our long-term objective is to reduce costs, boost profitability, and secure Blanket’s continued success,” Learmonth said.
Of the total capital expenditure, $34.9 million will be allocated to Blanket Mine to support ongoing expansion and modernization efforts. An additional $5.8 million will be directed towards advancing the Bilboes and Motapa projects—key assets Caledonia acquired in recent years as part of its diversification strategy beyond Blanket Mine.
“Our strategy is clear: continue growing our production capacity while extending mine life,” Learmonth added. “Investments like these have nearly doubled Blanket’s production over the past seven years and extended its life to 2034.”
Bilboes project gains momentum
Caledonia is also moving forward with the development of the Bilboes gold project, acquired for $65.7 million in 2023.
The company said it will allocate part of its 2025 capex to complete a feasibility study for Bilboes, positioning it as a potential game-changer in Zimbabwe’s gold sector.
To support this development, Caledonia recently secured a financing agreement with Cantor Fitzgerald & Co., allowing the company to sell up to $50 million in shares to raise funds for the Bilboes project.
“Our sustained investment in Blanket has yielded remarkable results, but we’re not stopping there. With projects like Bilboes and Motapa, we’re laying the foundation for a stronger, more diversified Caledonia,” he said.
The CEO said Caledonia plans to fund the 2025 capital expenditure from its cash flow, demonstrating confidence in its operational strength and long-term profitability.
