Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL, VFEX:CMCL) told investors that first-quarter gold production at its Blanket Mine reduced, as expected, to 14,767 ounces, as a planned move through lower-grade areas was compounded by equipment availability issues and difficult ground conditions.
The group said the weaker quarter had been anticipated, reflecting mining sequence and temporary access constraints to higher-grade, higher-volume zones. Even so, it leaves more weight on the second half of the year, when Caledonia expects a recovery as operational changes start to feed through.
Plant performance was a brighter point, as Blanket milled 202,217 tonnes in the quarter, with the company highlighting good availability across the processing circuit.
To support a stronger run-rate, Caledonia has appointed a contractor to accelerate access to planned ore sources, is moving to a seven-day mining week from six, and expects milling capacity to increase after commissioning an additional ball mill in the second quarter.
Caledonia said it remains comfortable with full-year production guidance of 72,000 to 76,500 ounces, reiterating that Blanket’s 2026 output should be weighted towards the second half as those initiatives take effect.
"The challenges experienced in the first quarter do not reflect the underlying quality of the orebody or the long‑term fundamentals of the operation," chief executive Mark Learmonth said in the statement.
Blanket remains a resilient, cash‑generative asset, supported by a capable and committed workforce and a processing plant that continues to perform reliably and where we are growing capacity.
"Management's focus is on stabilising mining areas, improving equipment availability and restoring access to planned ore sources as we progress through the year."