Caledonia Mining (CMCL) CMD 2026 summary

Strategic Growth and Production Outlook

• Plans to grow annual gold production from 75,000 ounces to approximately 280,000 ounces by 2029, driven by Bilboes development and ongoing optimization at Blanket Mine.

• Blanket Mine remains the cornerstone asset, with a current life of mine to 2034, ongoing exploration, and 2.18Moz M&I resources as of June 2026.

• Bilboes project targets first gold in late 2028 and full production of 200,000 ounces per year in 2029, with robust project economics and a mine life of nearly 11 years.

• Motapa and Maligreen provide additional exploration and development upside, with Motapa recently declaring a maiden resource of 500,000 ounces.

• The company is 100% focused on Zimbabwe, leveraging local expertise and capital discipline to drive organic growth.

Financial Guidance and Funding Strategy

• Blanket Mine generated $62 million in operating cash flow in H1 2026, supporting dividends and internal funding for growth.

• Bilboes requires $600 million in funding, with a four-pillar strategy: gold price hedging, $150 million convertible note, interim bank facility, and standalone project finance.

• Convertible note offering was oversubscribed, raising $150 million at a 5.8% coupon, convertible after 2032.

• Current liquidity exceeds $200 million as of June 2026, with strong cash generation and low leverage across the group.

• Market capitalization is $484 million, net cash $183 million, and total consolidated debt $164 million as of September 2026.

Operational Improvements and Cost Management

• Blanket Mine's cost per ounce increased due to deeper mining, higher input prices, and lower grades, but strategies are in place to reduce costs by increasing production and improving grades.

• Initiatives include a new shift system, plant upgrades, heap leach test pad for oxide ore, and improved labor productivity.

• Power mix improvements, including a 12 MW solar plant, have reduced diesel reliance from 8% to 2% since 2020.

• Ongoing upgrades to the elution plant and metallurgical facilities are expected to add 8,000-9,000 ounces of annual production.

• Revised technical report for Blanket Mine, reflecting these improvements, is expected by October 2026.