CMCL · Caledonia Mining Corporation Plc

Caledonia Mining's Q1 2026 results reflect a tale of two forces: a sharply higher gold price and operational headwinds at its Blanket Mine. Revenue rose 18.3% to $66.43 million, driven by a 66.3% increase in the average realized gold price to $4,816 per ounce, which more than offset a 28.9% decline in gold sales volumes to 13,784 ounces. Gross profit expanded 19.2% to $32.10 million, and EBITDA surged 50.2% to $33.87 million, highlighting significant operating leverage from the price tailwind. Profit after tax jumped 69.4% to $18.91 million, and basic EPS rose 77.8% to $0.80.

However, production challenges were evident. Gold output fell 20.9% to 14,767 ounces, primarily due to constrained access to higher-grade areas, which reduced head grade from 3.1 g/t to 2.5 g/t. This, combined with lower sales volumes, pushed on-mine cost per ounce up 44.8% to $1,740 and AISC per ounce up 53.9% to $2,765. Management noted that grade improved month-on-month during the quarter and into April, and reiterated full-year production guidance of 72,000-76,500 ounces, weighted to the second half. The company also announced a quarterly dividend of 14 cents per share, payable June 5, 2026. Free cash flow more than doubled to $12.28 million, underscoring the strong cash generation from higher gold prices despite operational setbacks.