Caledonia Mining (CMCL) Q1 2025 earnings summary

Executive summary

• Achieved record gross profit and strong EPS growth in Q1 2025, with a 95% increase in gross profit and a 503% rise in adjusted EPS year-over-year, driven by higher gold prices and increased production volumes.

• Strengthened balance sheet through improved cash position and the successful sale of the solar plant for $22.35 million in April 2025, improving pro forma net cash to $18.6 million.

• Board and management strengthened with new non-executive directors, a new CFO, and enhanced leadership, supporting strategic growth and capital allocation.

• Maintained operational resilience with production growth, cost management, and a strategic focus on maximizing Blanket Mine production, optimizing Bilboes economics, and advancing Motapa exploration.

Financial highlights

• Gold revenue for the quarter reached $56.2 million, up 46% year-over-year, driven by higher production and a realized gold price of $2,896/oz (up 42%).

• Gross profit hit a quarterly record of $26.9 million, up 95% year-over-year; net profit attributable to shareholders surged 493% to $8.9 million.

• Adjusted EPS climbed 503% to 58.5 cents; EBITDA increased 148% to $22.6 million.

• Net cash from operating activities more than doubled to $13.3 million, despite higher taxes and working capital deployment.

• Net cash position improved to negative $4.6 million from negative $14.2 million year-over-year, with further improvement post-solar plant sale.

Outlook and guidance

• Annual cost guidance expected to be met as one-off costs normalize and cost-saving initiatives take effect; on-mine cost guidance unchanged at $1,050–$1,150/oz and AISC projected at $1,690–$1,790/oz.

• Blanket Mine production guidance reaffirmed at 74,000–78,000 ounces of gold for 2025–26, with ongoing modernization.

• Exploration activities expanding at Blanket and Motapa, aiming to extend mine life and identify new resources.

• Strategic focus on disciplined growth, maintaining production levels, and optimizing Bilboes project economics to reduce upfront capital costs.

• Cash balance projected to reach $50–$60 million by year-end after CapEx, with all CapEx funded from internal cash flows.