Bilboes project to drive Caledonia’s next growth frontier in Zimbabwe
CLOUDINE MATOLA
Caledonia Mining Corporation Plc’s flagship Bilboes project is emerging as a transformative asset, with a recently completed feasibility study confirming its potential to significantly boost production, profitability, and deliver broad-based economic benefits to Zimbabwe, Business Times can report.
Chief executive officer Mark Learmonth said the study validates the group’s long-held expectations, positioning Bilboes as a cornerstone of its medium-term growth strategy.
“Beyond Blanket, we advanced our organic growth strategy and made decisive progress with Bilboes, our next mine. The publication of the Feasibility Study confirmed our expectations that Bilboes is an attractive and robust project that has the potential to materially change our production and profit profile and at the same time provide meaningful contributions to Zimbabwe,” Learmonth said.
The Bilboes project is expected to anchor Caledonia’s transition from a single-asset producer into a diversified, multi-mine operator, at a time when elevated global gold prices are strengthening project economics across the sector.
Further strengthening this trajectory is the group’s strategic investment in Motapa, a property contiguous to Bilboes, which is set to deepen the company’s resource base and expand its long-term production pipeline.
“Our investment in Motapa, which sits contiguous to Bilboes, forms an important part of our strategy to build a broader production and growth platform in Zimbabwe,” Learmonth said.
Caledonia’s financial position has also been materially reinforced following post-period funding initiatives and proceeds from the sale of its solar plant at Blanket Mine. The improved balance sheet, management says, provides the group with the flexibility required to fund capital-intensive growth projects while maintaining financial discipline.
“Our post-period funding initiatives, together with the proceeds from the sale of the solar plant at Blanket, have significantly strengthened our balance sheet and leave us well positioned to fund growth while importantly maintaining financial flexibility,” Learmonth added.
Looking ahead to 2026, the company is sharpening its focus on execution, with a clear strategic objective of becoming a multi-mine gold producer. Key priorities include advancing Bilboes in line with financing and development timelines, ramping up targeted exploration at Motapa, and sustaining stable operations at Blanket Mine.
“Looking ahead to 2026, our focus is on execution and the strategic objective of becoming a multi-mine producer. Our commitment is unwavering to safety and our people while maintaining consistent operations at Blanket, advancing Bilboes in line with the financing and development timetable, continuing targeted exploration at Motapa, and delivering sustainable value for shareholders, employees and the communities in which we operate,” said Learmonth.
The company also intends to capitalise on the current strong gold price environment to reinvest in its flagship Blanket Mine, with a focus on improving operational resilience and mitigating rising input costs.
Financially, Caledonia delivered a standout performance in 2025, underpinned by firm gold prices and solid production volumes. Revenue surged by 46% to US$267.7 million, up from US$183.0 million in 2024.
Profit after tax recorded an even more dramatic rise, jumping 193% to US$67.5 million from US$23.1 million in the prior year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) more than doubled to US$125.3 million, compared to US$59.7 million in 2024, reflecting a substantial uplift driven primarily by higher realised gold prices.
