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SEC filingStrong performance driven by higher gold prices that increased revenue, despite elevated administrative and on-mine costs from higher headcount, bonuses, settlements, and operating pressures across cost categories.
Caledonia Mining Corporation Plc delivered a robust year in 2025, with revenue growth stemming directly from an increase in the average realized gold price received. This topline strength underscores the benefits of operating in a high-price gold environment, enabling the Company to capture greater value from its production at the Blanket Mine, even as other pressures mounted.
Administrative expenses rose, driven primarily by an increase in employee headcount, bonus payouts reflecting strong performance, and a one-time settlement payment to the former Chief Financial Officer. These factors highlight the human capital investments and resolutions needed to support ongoing operations and leadership transitions, though they added to overhead costs outside Zimbabwe.
On-mine production costs per ounce increased compared to 2024, attributable to higher operating costs across all categories, as detailed in the analysis of Blanket and Bilboes operations. This uptick reflects broader inflationary and operational challenges in Zimbabwe, where management has responded by installing electricity measuring systems. The Company is now evaluating its electricity infrastructure, usage, and supply to cut consumption, enhance reliability, and explore alternative energy sources—steps aimed at sustainably lowering these costs over time.
Non-IFRS measures like on-mine cost, all-in sustaining cost (AISC), and all-in cost per ounce provide investors with insights into the full economics of gold mining across a mine's life cycle. AISC specifically incorporates administrative expenses incurred outside Zimbabwe, excludes intercompany procurement margins, and deducts solar power intercompany profit prior to the plant's sale on April 11, 2025. This methodology ensures the metric captures the true consolidated costs at the Group level. Additionally, post-Central Shaft completion, a greater portion of Blanket Mine's capital expenditure has shifted to sustaining rather than expansion (non-sustaining) categories. This reallocation influences AISC calculations, as sustaining capex is included while expansion spending feeds into all-in cost, better aligning reported figures with the mine's mature phase.
Production costs for 2025, alongside 2024 and 2023 comparatives, are summarized in the filing, offering a multi-year view of cost trends. Management's forward-looking discussion notes inherent risks and uncertainties in plans and objectives, while affirming expectations of non-PFIC status based on current business plans. These elements collectively frame Caledonia's strategic positioning, balancing immediate cost management with long-term operational resilience in a volatile gold market.