Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL, VFEX:CMCL) maintained its 2026 production target for the Blanket gold mine after output rebounded 18% quarter-on-quarter in the second quarter, though the company raised its cost guidance.
Blanket produced 17,360 ounces during the quarter as average feed grades improved to 2.9 grams per tonne from 2.5g/t in Q1. Caledonia reiterated full-year production guidance of 72,000-76,500 ounces, with management expecting further improvement during the second half.
Revenue increased 16% year-on-year to US$75.9 million, supported by a 34% rise in the realised gold price to US$4,259 an ounce. EBITDA rose 16% to US$45.8 million, while profit after tax increased 27% to US$30.0 million and basic earnings per share rose 28% to US$1.36.
Caledonia lifted 2026 on-mine cost guidance to US$1,600-US$1,800 an ounce and AISC guidance to US$2,500-US$2,700, reflecting employee payments, royalties and additional sustaining expenditure. Group capex guidance was meanwhile cut to US$103.3 million from US$178.9 million, largely because Bilboes expenditure will occur later than previously anticipated, with no change to its planned scope or timetable.
Management expects Blanket production in 2027 to exceed the previous 72,000-76,500-ounce range, with detailed guidance due after budgeting and technical planning are completed at the end of 2026.
