Caledonia Mining Corporation Plc (Caledonia) has reported a production slump at its flagship Blanket Mine (Blanket) to 14,767 ounces of gold in the first quarter of 2026, from 18,671 ounces produced in prior comparable period, but remains optimistic of reaching full-year target of 76,500 ounces.
The group – holding a 64 percent controlling stake – in Blanket said the lower performance was expected.
“A lower quarter was anticipated reflecting mining sequence and anticipated access constraints to higher grade, higher volume areas,” said chief executive Mark Learmonth.
“Gold production in Q1 2026 was below our expectations, reflecting the lower grades mined during the quarter,” he said, adding that “this is consistent with our guidance of production being weighted towards the second half of the year.”
Learmonth said “Caledonia remains comfortable with Blanket’s full-year production guidance of 72,000 to 76,500 ounces.”
He said “the quarter also included several typical operating challenges associated with deep, mature mining assets, including sequencing considerations, equipment downtime and difficult ground conditions in certain areas.”
“These factors,” Learmonth said “temporarily constrained access to some planned ore sources.”
He said the miner was actively addressing the challenges through several practical measures, including the acceleration of mine development, supported by the appointment of a contractor, to improve access to planned ore sources.
“Importantly, we will be introducing a revised shift system later in the year, moving the operation to a seven-day working week (up from six), which we expect will both reduce worker fatigue and support increased ore production.”
Learmonth further stated: “Alongside these mining initiatives, we are progressing further plant improvements, including an increase in milling capacity following the commissioning of an additional ball mill. Taken together, these actions are expected to support a stronger production profile in the second half of the year and into 2027.”
He said the challenges experienced in the first quarter do not reflect the underlying quality of the orebody or the long-term fundamentals of the operation.
“Blanket remains a resilient, cash-generative asset, supported by a capable and committed workforce and a processing plant,” Learmonth said. – TML