Caledonia Mining Corporation Plc reported 17,030 ounces of gold production from its Blanket Mine in Zimbabwe for the quarter ended September 30, 2026. The company also reduced its FY 2026 production guidance and revised its cost and capital-expenditure expectations. Production figures are stated on a 100 per cent basis and remain subject to final assays by the refiner.
#Blanket production affected by equipment and processing issues
Blanket produced 17,030 ounces in Q3 2026, compared with 19,106 ounces in Q3 2025. Output for the 9 months ended September 30, 2026 was 49,158 ounces, compared with 58,846 ounces during the corresponding period in 2025.
Caledonia said quarterly production was held back by insufficient compressed-air capacity in high-grade, high-volume mining areas and a temporary rise in gold inventory within the metallurgical plant. Mining in September increasingly moved towards the deeper 30 and 34 levels, located 990 and 1,110 meters below surface, respectively.
The company had procured four additional compressors for work at the deeper levels and for increased development activity following the appointment of contractors earlier in the year. Caledonia said delays in delivering and deploying the equipment severely adversely impacted production in the high-grade areas. Two compressors have been deployed, while the remaining two have been released from the port and are being transported to the mine.
Caledonia said it anticipates that normalised production will be achieved during Q4.
#Gold retained in the processing plant
New equipment was introduced in September to improve efficiency, recovery and security in the gravity gold circuit, which recovers free-gold. The company said approximately 45-50 per cent of Blanket’s gold is free-gold recovered through that circuit.
Commissioning difficulties resulted in approximately 1,100 ounces of free-gold being retained in the metallurgical plant. Caledonia said the gold should be recovered over a period of time commencing mid-October, after increased elution capacity has been commissioned.
#FY 2026 production guidance reduced
Caledonia reduced its Blanket production guidance for FY 2026 to a range of 69,000 to 72,500 ounces, from 72,000 to 76,500 ounces previously. The company said the revised guidance implies Q4 2026 production of approximately 19,800 to 23,300 ounces.
Caledonia said Q4 2026 production is expected to benefit from additional compressed-air capacity, the recovery from mid-October of approximately 1,100 ounces retained in the metallurgical plant, and the processing of additional ore at the Lima satellite plant arising from the seven-day shift system.
The company also identified improved mining flexibility, greater access to higher-grade areas, increased elution capacity and improved recovery performance as expected contributors. This includes the processing of 58.04 tonnes of accumulated activated carbon, which contains approximately 1,166 ounces of gold at an average grade of 625.0 grammes per tonne.
Caledonia said the operational initiatives under way are expected to provide the foundation for higher and more consistent production in 2027. The company also said the measures are intended to support more consistent production, improved grade and lower unit costs.
#Cost guidance revised higher
Caledonia revised its FY 2026 on-mine cost guidance to US$1,700-US$1,900 per ounce sold, from US$1,600-US$1,800 per ounce sold previously. The company attributed the change to lower expected production volumes.
All-in sustaining cost guidance was revised to US$2,650-US$2,850 per ounce sold, compared with US$2,500-US$2,700 per ounce sold previously.
#Group capital expenditure guidance reduced
Group FY 2026 capital-expenditure guidance was reduced to US$94.3 million from US$103.3 million. Caledonia said the change primarily reflects the timing of certain expenditures, including components of the 132kV power line project that are now expected to be incurred in 2027.
The company said the revised guidance does not represent any material reduction in the overall scope of planned capital projects. The allocation comprises US$44.0 million of sustaining capital expenditure at Blanket, reduced from $48.0m; US$3.5 million of growth capital at Blanket, unchanged; US$43.0 million of growth capital expenditure at Bilboes, previously $48.0m; and US$3.8 million of exploration at Motapa, unchanged.
Management said it believes the revised FY 2026 guidance will not adversely affect the Group’s ability to use internal cash flows to contribute towards funding the Bilboes development project.
#Forward-looking information and technical review
Caledonia cautioned that its expectations for compressor deployment, production, processing improvements and 2027 performance are forward-looking information. The company said actual results could differ materially because of risks involving equipment availability and reliability, mine sequencing, ground conditions, labour availability and productivity, plant performance, commissioning delays, project approvals, capital and operating costs, inflation, exchange rates, gold prices, mining inputs, mineral reserves and grades, exploration results, environmental and regulatory matters, political risk, community relationships and other factors.
The company also cited risks related to natural disasters, terrorism, civil unrest, public health concerns, suppliers, refiners and other counterparties, insurance, employee relations, mineral exploration and development, licences and permits, project delays, competition for properties and personnel, and changes to project parameters. Caledonia cautioned investors not to place undue reliance on the forward-looking information and said it undertakes no obligation to update it except as required by law.
Craig James Harvey, MGSSA, MAIG, Caledonia’s Vice President, Technical Services, reviewed and approved the scientific and technical information. The company identifies Harvey as a Qualified Person under Canadian Securities Administrators’ National Instrument 43-101 and sub-part 1300 of Regulation S-K of the U.S. Securities Act.
#Key Takeaways
- Blanket produced 17,030 ounces of gold in Q3 2026 and 49,158 ounces in the 9 months ended September 30, 2026.
- Caledonia attributed the lower output to compressed-air shortages at deeper mining areas and gold temporarily retained in the metallurgical plant.
- FY 2026 Blanket production guidance was reduced to 69,000 to 72,500 ounces.
- On-mine cost and all-in sustaining cost guidance were revised to US$1,700-US$1,900 per ounce sold and US$2,650-US$2,850 per ounce sold, respectively.
- Group FY 2026 capex guidance was reduced to US$94.3 million, with some 132kV power line expenditure now expected in 2027.
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