Caledonia reports positive balance sheet

Published: 12 August 2025

Caledonia Mining Corporation has reported a robust second-quarter performance for the financial year, buoyed by the sale of its solar energy business for US$22,35 million, which significantly strengthened its balance sheet.

The Jersey-domiciled miner completed the sale of its subsidiary, Caledonia Mining Services (Private) Limited-owner of a 12,2-megawatt solar project-to Kenya's CrossBoundary Energy Holdings on June 30, 2025, for a cash consideration of US$22,35 million. After transaction costs, the company realised net cash proceeds of US$21,97 million, bolstering its financial position.

At the end of the quarter, Caledonia's total assets stood at US$389,16 million, up from US$348,36 million during the same period last year. This growth was attributed to an improved cash position, supported by record gold production at the Blanket Mine and a favourable gold price environment.

"Caledonia has delivered another strong quarter, highlighted by record second-quarter gold production at Blanket and a substantial increase in profitability," chief executive officer Mark Learmonth said. "The successful sale of our solar plant has strengthened our balance sheet and ensured a reliable, long-term renewable energy supply for Blanket Mine."

Operating cash inflows for the half year reached US$41,3 million, with US$28,1 million generated in the second quarter alone. The firm also received US$22,35 million (pre-tax) from the solar plant sale, further boosting liquidity.

The miner invested US$17,7 million during the half year in property, plant, and equipment-US$10,5 million of which was spent in the second quarter-on key infrastructure projects at Blanket. Exploration and evaluation activities, mainly at Bilboes and Motapa, accounted for US$3,1 million in spending, while US$18 million was placed into fixed-term deposits to optimise short-term returns.

Financing activities saw a net outflow of US$6 million for the half year and US$6,9 million for the quarter, largely due to loan repayments and bond-related transactions. Additionally, US$9 million was returned to shareholders through dividends, while US$0,1 million went towards lease liabilities. As a result, cash and cash equivalents increased by US$16,9 million over the half year to US$8,2 million.

Caledonia continues drilling at Blanket Mine, with results showing promising grades and widths, and is making progress on the Bilboes feasibility study. Exploration at Motapa is also advancing, targeting both sulphide and oxide resources to support near-term production and long-term growth.

Looking ahead, Learmonth said the company remains committed to meeting its increased production guidance at Blanket while expanding its growth pipeline. "We are well-positioned to continue building on this positive momentum, with a strong operational base and a clear strategic road map," he said.

Revenue for the quarter rose 30% to US$65 million compared to the same period last year.
- newsday

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