Caledonia Mining Corporation Plc

Q2 revenue was $76 million, up 16%; EBITDA was nearly $46 million, up 16%; profit after tax was $30 million, up 27%; and EPS was $1.36, up 29%. Operating cash flow was $28.4 million, and cash and cash equivalents ended the quarter at $167.8 million. The company said production rose 18% sequentially in Q2, helped by improved access to higher-grade areas; average realized gold price was $4,259/oz, up 34% quarter-on-quarter. For full-year guidance, on-mine cash cost per ounce sold was raised by $100 to $1,600-$1,800, and AISC per ounce sold was raised to $2,500-$2,700 from $2,100-$2,300. Capex guidance was updated to $103 million from $162 million, with 2026 Bilboes spend now at $48 million versus a prior $132 million, mainly due to timing and better financing terms.

Mark Learmonth framed the quarter as a transition from a weak Q1 to a stronger second half, emphasizing that grade recovery was the main operational driver. He said the company is moving from stabilizing Blanket to increasing throughput through a 7-day schedule, higher blasting, and planned plant upgrades that could lift the mine to about 990,000 tons a year. He also highlighted Bilboes, Motapa, and K-Pits as the main growth pipeline, saying the strategy is to keep funding progressing while building a longer-term growth base.

Ross Jerrard said the quarter benefited from a higher realized gold price of $4,259/oz, but lower ounces affected unit metrics. He pointed to one-off or non-cash items that lifted reported costs, including a $3.2 million Blanket Employee Trust distribution now classified as production cost under IFRS, higher wheeling charges on electricity, advisory fees tied to funding work, and fair-value movements on derivative instruments. He said liquidity was strong, with cash on hand of $171 million, bullion on hand of $13.5 million, and total liquidity above $200 million, while debt structures were being rolled without a change in overall strategy.

Analysts focused on whether the 18% increase in blasting could translate into similar production growth, and management said it should over time, though the mine is still opening new areas. Questions also centered on the plant expansion, where management said the main upgrades are front-end crushing and a larger CIL tank, costing about $3.5 million, but the exact timing and 2027 ounce impact are still being worked through. On Bilboes, management said the lower 2026 capex plan is a timing shift, not a reduction in project scope, and that interim funding remains full steam ahead with no relaxation on closing it early.