Caledonia's Blanket output falls in first quarter but miner holds 2026 guidance

Caledonia Mining Corporation reported a weak start to 2026 at its Blanket gold mine in Zimbabwe, with first-quarter output of 14,767 ounces against 18,671 ounces in the same quarter of 2025. The Jersey-registered miner nevertheless told investors on 20 April that it remained comfortable with its full-year production guidance of 72,000 to 76,500 ounces.

The shortfall had partly been expected. Caledonia said the mining sequence planned for the quarter limited access to Blanket's higher-grade ore zones, so a softer quarter was built into the plan. Two further problems made it worse than hoped: equipment availability fell short, and some working areas presented difficult ground conditions. Chief executive Mark Learmonth singled out both factors when explaining the result.

The processing side held up. The plant milled 202,217 tonnes during the quarter and, according to the company, continued to perform well. The issue was the grade and volume of ore that the underground operation could deliver to it.

Three fixes for the rest of the year

Management set out three measures intended to lift output from the second quarter onwards. The first is a new shift arrangement that moves underground mining from six days a week to seven, adding production time without new capital. The second is the appointment of a contractor to speed up development into higher-grade ore sources, addressing the access constraint directly. The third is extra milling capacity, with an additional ball mill being commissioned during the second quarter.

Taken together, Caledonia expects these steps to push production towards the second half of the year. That back-weighting is a familiar pattern for underground mines working through development constraints, but it leaves little room for further setbacks if the full-year range is to be met. To hit even the bottom of the guidance band, Blanket needs to average just over 19,000 ounces a quarter for the remaining nine months.

Why Blanket matters

Blanket is Caledonia's producing mine and the cash engine behind its plan to build the much larger Bilboes gold project, also in Zimbabwe. Every ounce produced at record gold prices strengthens the internal contribution the company intends to make to Bilboes funding alongside project debt. A sustained dip at Blanket would therefore matter beyond one quarter's numbers.

For Zimbabwe, Blanket is one of the country's most established large-scale gold operations at a time when the government is pushing for higher national output and when primary producers account for a minority of gold delivered to the state refinery. Investors will look to the second-quarter update, due in July, for evidence that the seven-day roster, contractor development and new mill are delivering higher grades and tonnes.

Sources

• National Law Review (ACCESS Newswire release): Caledonia Mining Corporation Plc Blanket Mine Q1 2026 Production and Operating Update, 20 Apr 2026

Photo: A specimen of high-grade gold ore with gold flakes in white quartz, photographed for a geology collection. Darla Sondrol, Wikimedia Commons, CC0.