Caledonia Mining Shares Fall After Blanket Gold Guidance Cut and Higher Costs

Caledonia Mining (LON: CMCL) has cut its 2026 gold production guidance for Blanket Mine to 69,000–72,500 oz from 72,000–76,500 oz, and its shares fell about 5.6% in early trading. The AIM-listed miner runs Blanket in Zimbabwe and is developing the Bilboes project.

The shares were at 1,700p at about 8.03am today, down 5.56% from yesterday’s close of 1,800p. That is a delayed intraday quote, not a close, and it sits below the 1,725–1,850p range of early October, though well above the July low of 1,275p. Volume was thin.

The company announced the cut at 7am, before the London open. Third-quarter output was 17,030 oz, against 19,106 oz a year earlier, and nine-month output of 49,158 oz is 16.5% below last year’s 58,846 oz. Chief executive Mark Learmonth blamed two causes.

Production in the third quarter was below our expectations, principally due to insufficient compressed air capacity in deeper, higher-grade mining areas and the temporary retention of gold within the processing circuit.

Mark Learmonth, Chief Executive Officer, Caledonia Mining

The new range puts the midpoint down 3,500 oz, about 4.7%. Costs rise too: the company attributes higher unit costs to lower expected production. AISC, all-in sustaining cost, is the full cost of each ounce sold.

Everything now rests on the fourth quarter: the company says the new guidance implies output of about 19,800–23,300 oz.

Management points to delayed compressors, of which two of four are deployed and two are in transit, plus recovery of the retained gold from mid-October and ore from the Lima satellite plant. Learmonth said Blanket remains robust and cash-generative.

Group capital spending guidance is also lower, which the company says is timing only and not a smaller project scope. It says internal cash flow can still help fund Bilboes.