Caledonia Mining Reports Q3 2026 Revenue Growth Amidst Production Challenges and Lower Profits
Caledonia Mining reported third-quarter 2026 revenue of $78.9 million, a 10.5% year-over-year increase fueled by a significant rise in the average realized gold price to $4,134 per ounce. However, profitability was pressured as EBITDA fell 16% to $28.1 million and profit after tax dropped 39.3% to $11.3 million, largely due to a $12.9 million noncash fair value loss on derivative instruments. Operational headwinds at the Blanket Mine, including compressed air shortages and metallurgical plant inefficiencies, led to an 11% decline in gold production. Consequently, the company has lowered its 2026 production guidance to between 69,000 and 72,500 ounces. Despite these challenges, Caledonia strengthened its liquidity position with $161.9 million in cash and a new $150 million interim funding facility from Zimbabwean banks.