Caledonia Mining says gold production back to normal, higher gold prices supported financials in Q3 Proactive Thu, November 12, 2026 at 2:58 AM EST 2 min read GC=F -1.30% CMCL 0.00% Trade CMCL on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL, VFEX:CMCL) told investors that gold production at its Blanket mine in Zimbabwe had returned to normal after a disrupted third quarter.
A higher gold price lifted revenue despite fewer ounces sold, but a US$12.9 million non-cash loss on derivatives helped push profit after tax down 39% to US$11.3 million.
Caledonia received an average of US$4,134 an ounce for its gold in the three months to September, up from US$3,434 a year earlier. Revenue rose 10.5% to US$78.9 million and gross profit climbed 13.6% to US$41.9 million. The derivative loss reflected changes in the value of the conversion option on its notes and options used to hedge the gold price.
Blanket produced 17,030 ounces, down 11% year on year. A compressed-air shortage disrupted mining in higher-grade areas underground, while roughly 1,100 ounces of gold remained trapped in the processing plant at quarter-end.
New compressors came into service on 31 October, and a new vessel at the plant has recovered more than half the trapped gold.
"While production at Blanket in the Quarter was below our expectations, the strong gold price supported higher revenue and gross profit. We have a good understanding of the operational issues that affected production and we have taken clear steps to address them
"It is also important to note that the non-cash fluctuations in the value of the Company's derivative positions will continue to inject volatility into our financial results for some years to come. The carrying values of the conversion option of the Convertible Senior Notes and the gold price hedge put options fluctuate significantly with changes in the Company's share price and the gold price."
Caledonia expects Blanket to produce 69,000–72,500 ounces in 2026 under its revised guidance. Recovering the remaining gold from the plant is a fourth-quarter priority.
Learmonth added: "We continue to make important progress on our growth strategy. Bilboes is our immediate growth priority, with first gold targeted for the fourth quarter of 2028, and we are maintaining momentum.
"Beyond Bilboes, we continue to make encouraging progress across our wider portfolio.
"The increase in Blanket's mineral resource base reinforces our confidence in the long-term potential of the mine and provides a stronger foundation for extending its life and evaluating opportunties for future production growth ... At Motapa, the declaration of a maiden mineral resource is an important first step in demonstrating the scale and potential of what we believe could become another significant asset for the group."
