Caledonia sets new production record after offloading solar unit for $22.35m

ROBIN PHIRI

Dual listed resources firm, Caledonia Mining Corporation Plc, has reaffirmed its commitment to gold production, setting a new first-quarter record at its flagship Blanket Mine in Zimbabwe.

This strategic focus follows the  company’s recent divestiture of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited,  which owns and operates a 12.2MW solar plant that powers Banket Mine.

The subsidiary was sold to CrossBoundary Energy Holdings for $22.35m.

With shares trading on both the Victoria Falls Stock Exchange and London Stock Exchange, Cledonia is sharpening its core operations by shedding non-core assets- a move already delivering results.

In the first quarter of 2025, the company produced an impressive 18,671 ounces of gold, surpassing both last year’s Q1 output of 17,050 ounces and its previous first-quarter record of 18,515 ounces set in 2022. The strong start to the year underscores Caledonia’s bullish stance on gold, as it builds operational momentum and eyes full-year production guidance of between 74,000 and 78,000 ounces.

Tonnes milled during the quarter reached 201,755—an increase of 13.4% over expectations, or 23,793 tonnes more than projected. Meanwhile, the surface stockpile has grown to approximately 15,000 tonnes, suggesting that run-of-mine production is outpacing milling capacity.

Caledonia CEO Mark Learmonth hailed the results as a breakthrough.

“I’m delighted to report that production in Q1 2025 has set a new record for a first quarter at Blanket,” he said. “Traditionally, Q1 is our weakest quarter due to seasonal and operational factors. Achieving record production at this time reflects our ongoing operational improvements and the unwavering commitment of our team on the ground.”

Learmonth added that the increased milling and growing surface stockpile offer a solid springboard for the rest of the year. “This is an excellent start. With strong gold prices, we are well-positioned to generate healthy cash flows and to continue investing in our growth projects.”

The sale of the solar plant not only unlocks capital for further investment but also signifies a strategic pivot. Caledonia is clearly betting big on gold, and with its streamlined operations, the company appears ready to scale new heights in 2025.

Related