Caledonia Mining (CMCL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 18.3% year-over-year to $66.43 million, driven by higher gold prices despite lower production volumes at Blanket Mine, which produced 14,767 ounces due to restricted access to high-grade areas.

• Profit after tax surged 69.4% to $18.91 million, with EBITDA up 50.2% to $33.87 million and EPS rising 77.8% to $0.80.

• Free cash flow more than doubled to $12.3 million, and net cash from operating activities increased 41.5% to $18.9 million.

• Safety performance improved, with increased near-miss reporting, zero LTIFR, and TIFR dropping to 2.22.

• Quarterly dividend of $0.14 per share declared; new Chairman appointed.

Financial highlights

• Gross profit increased 19.2% to $32.1 million, reflecting improved margins from higher gold prices.

• All-in sustaining cost per ounce rose 53.9% to $2,765 due to lower grades and volumes; on-mine cost per ounce sold increased 44.8% to $1,740.

• Net cash and liquid assets at quarter-end totaled $180.4 million; total liquidity $191.1 million.

• Significant cash inflow from $150 million convertible senior notes issued in January 2026.

• Capital expenditure for Q1 2026 was $5.28 million, focused on underground development and sustaining operations.

Outlook and guidance

• Production at Blanket Mine improved post-quarter, with full-year 2026 guidance at 72,000–76,500 oz and output expected to be weighted toward H2.

• Remediation initiatives include contractor acceleration, revised shift system, and commissioning of a new ball mill to boost capacity.

• Bilboes Gold Project progressing, with detailed engineering design to be completed by Q3/Q4 2026 and first gold pour targeted for late 2028.

• Motapa maiden mineral resource estimate expected in Q3 2026; exploration ongoing.

• Management expects unit costs to normalize as production increases in H2 2026.