This is an updated version of the report published on December 24, 2025, at 10:12 AM GMT.

Caledonia Mining Corporation PLC 

Caledonia Mining Corporation PLC (LSE: CMCL) a constituent of the FTSE AIM 100 index, is a gold producer, explorer, and developer with a primary focus on Zimbabwe. The company holds a 64% interest in the Blanket Mine, an established gold producer, along with full ownership (100%) of the Bilboes mine and the Motapa and Maligreen gold exploration projects, all located in Zimbabwe. 

Key Recommendation Rationale – Sell at GBX 2,020.00

• Resistance near Current levels:’s stock price crossed the Resistance (R1) which was stated in the previous report on 08 December 2025 therefore, there could be a possibility that the stock might consolidate or decline from the current levels, considering overstretched valuation. Considering the market conditions and the price action, it is prudent to exit from the stock.

• Escalating Operating Costs: The company is struggling with cost control. On-mine costs and All-In Sustaining Costs (AISC) have risen significantly year-over-year (16.3% and 29%, respectively). Management has also been forced to raise its full-year 2025 cost guidance, indicating persistent operational inefficiencies.

• Declining Ore Grade: The quality of ore being mined at the flagship Blanket asset is deteriorating. The head grade fell 2.3% year-over-year, requiring more tonnes to be processed to maintain production. This lower-grade ore is a primary driver of higher unit costs. 

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

One-Year Technical Price Chart (as of December 24, 2025). Source: REFINITIV 

Conclusion

The company faces operational challenges characterized by rising costs and declining ore quality. Both on-mine and All-In Sustaining Costs have increased substantially year-over-year, prompting an upward revision to full-year cost guidance. Concurrently, a 2.3% decline in head grade at its flagship asset is forcing higher processing volumes to maintain output, directly driving the escalation in unit costs.

For conducting the valuation, the following peers have been considered: Hochschild Mining PLC (LSE: HOC), Endeavour Mining plc (LSE: EDV), etc

Given its current trading levels, the recent strategic investments and partnerships, relative valuation, and associated risks, it is prudent to exit the stock at the current levels.

Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 2,020.00 as of 24 December 2025, at 09:00 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 24 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’