Caledonia Mining Corporation Plc (NYSE American, AIM and VFEX: CMCL) has reported its unaudited results for the third quarter ended 30 September 2026, revealing revenue growth of 10.5% to US$78.9 million despite a production shortfall at its Blanket Mine in Zimbabwe caused by compressed air shortages and a temporary gold lock-up in the metallurgical plant. Gross profit rose 13.6% to US$41.9 million, underpinned by a higher average realised gold price of US$4,134 per ounce. Profit after tax fell 39.3% to US$11.3 million, largely due to a non-cash fair value loss of US$12.9 million on derivative financial instruments linked to the company's Convertible Senior Notes issued in January 2026. The Board has approved a quarterly dividend of US$0.14 per share, payable on 11 December 2026.

Key Points

  • Caledonia Mining Corporation Plc (NYSE American, AIM and VFEX: CMCL)
  • Q3 2026 revenue rose 10.5% to US$78.9 million; profit after tax fell 39.3% to US$11.3 million due to a US$12.9 million non-cash derivative fair value loss
  • Blanket Mine produced 17,030 oz in Q3 2026, down 11% year-on-year; full-year 2026 production guidance revised to 69,000–72,500 oz; AISC guidance revised to US$2,650–US$2,850/oz sold
  • Investors will be watching the Bilboes Gold Project financing progress and K-Pits heap leach trial results, with full-scale oxide mining potentially commencing in Q1 2027

Compressed Air Shortages and Metallurgical Plant Lock-Up Cut Blanket Mine Output by 11% in Q3 2026

Blanket Mine, Caledonia's flagship underground gold operation in Zimbabwe, produced 17,030 oz in Q3 2026, compared with 19,106 oz in Q3 2025. The announcement states that delays in delivering two compressors — caused by port congestion in Mozambique — restricted mining activity at the 30 and 34 Levels, located approximately 990 metres and 1,110 metres below surface respectively. Separately, commissioning difficulties in the gravity gold circuit resulted in approximately 1,100 oz being temporarily retained in the metallurgical plant. Both compressors were commissioned on 31 October, and a new 3-tonne elution vessel commissioned on 16 October had recovered over half of the locked-up gold by 6 November 2026.

Higher Gold Price Drives Revenue and Gross Profit Growth Despite Lower Sales Volumes

Despite consolidated gold sales falling to 19,082 oz from 20,792 oz in Q3 2025, Caledonia's revenue increased 10.5% to US$78.9 million, driven by an average realised gold price of US$4,134 per oz versus US$3,434 per oz in the comparative quarter. Gross profit improved 13.6% to US$41.9 million and operating profit before non-cash fair value adjustments reached US$36.7 million, up from US$29.5 million in Q3 2025. Net cash generated from operating activities was broadly stable at US$13.6 million. The consolidated on-mine cost averaged US$1,514 per oz sold and AISC averaged US$2,344 per oz sold, both elevated due to fixed costs being absorbed over fewer ounces.

US$12.9 Million Non-Cash Derivative Loss Weighs on Profit After Tax for Q3 2026

Profit after tax declined 39.3% to US$11.3 million, principally because of a US$12.9 million net non-cash fair value loss on derivative financial instruments. The announcement states this included a US$10.0 million increase in the fair value of the embedded derivative liability on the Convertible Senior Notes, driven by Caledonia's share price rising from US$19.10 to US$23.54 during the quarter. Basic earnings per share fell to US$0.11 from US$0.77 in Q3 2025. The company notes these non-cash fluctuations will continue to inject volatility into reported profits for some years, as the carrying values are sensitive to movements in both the gold price and the company's share price.

Bilboes Project Secures Up to US$150 Million Interim Facility; K-Pits Heap Leach Trial Under Way

Caledonia's immediate growth priority is the Bilboes Gold Project in Zimbabwe, with first gold targeted for Q4 2028. On 5 November 2026, a wholly owned subsidiary signed a facilities agreement with a consortium of Zimbabwean banks to borrow up to US$150 million to finance the project, providing additional financial flexibility as procurement and construction advance. Meanwhile, the K-Pits heap leach trial at Blanket commenced deposition of an initial 10,000 tonnes of oxide material in October, with irrigation planned for mid-November. The EIA certificate has been received, meaning full-scale oxide mining could begin in Q1 2027 if the trial proves successful. Blanket's underground measured and indicated mineral resources also increased 22% to 2.178 million oz as at August 2026.