# Caledonia Mining Reports Strong Q1 2025 Earnings and Growth Plans

## Chief Executive Officer’s Insights

Mark Learmonth, Chief Executive Officer, remarked on the company’s remarkable start to 2025. He noted that gold production increased by 9.3%, resulting in a nearly doubling of gross profit to $26.9 million compared to the previous year. This performance highlights both operational resilience and the ability to leverage favorable gold prices.

He also mentioned the successful sale of the solar plant for $22.35 million, significantly enhancing the company’s balance sheet. This financial strength will allow Caledonia to accelerate its growth initiatives at Bilboes and Motapa while also investing in operational improvements at Blanket Mine.

Looking ahead to 2025, Caledonia will focus on three strategic priorities: maximizing profitable production at Blanket, optimizing the economics of the Bilboes project, and unlocking exploration potential at Motapa. Learmonth expressed confidence that a disciplined approach to capital allocation and strategic growth will generate strong returns for shareholders.

## Financial Results Overview

Key Metrics ($’000 except per share amounts)	Q1 2025		Q1 2024		% Change
Revenue	56,178		38,528		+46%
Gross Profit	26,926		13,815		+95%
Net Profit Attributable to Shareholders	8,915		1,486		+500%
Basic IFRS EPS (cents)	44.6		7.3		+511%
Adjusted EPS (cents)	58.5		9.7

Caledonia’s Q1 Financial Performance Shows Robust Growth

Net Cash from Operating Activities	13,341		4,887		+173	%
Net Cash Position	(4,572)	)	(14,160)	)	+68	%
Gold Produced (oz)	19,106		17,476		+9.3	%
On-mine Cost ($/oz)	1,202		1,065		+12.9	%
AISC ($/oz)	1,797		1,350		+33.1	%

Revenue for the quarter reached $56.2 million, reflecting a 46% increase from $38.5 million in Q1 2024. This growth was propelled by higher sales volumes and a 42% rise in the average realized gold price to $2,896 per ounce.

Gross profit nearly doubled to $26.9 million, up from $13.8 million in Q1 2024, resulting in a gross margin of 48%, compared to 36% in the previous year. The uptick in gold prices significantly alleviated the impact of rising production costs.

Net profit attributable to shareholders surged nearly sixfold to $8.9 million, compared to $1.5 million in Q1 2024. Adjusted EPS also saw growth, rising to 58.5 cents from 9.7 cents in the same quarter last year.

Costs

On-mine costs per ounce increased by 12.9% to $1,202 from $1,065 in Q1 2024. This rise was primarily due to higher labor, power, and consumable costs at Blanket Mine.

All-in sustaining costs (AISC) rose to $1,797 per ounce, up from $1,350. This increase resulted from higher on-mine costs, augmented sustaining capital expenditure, and administrative costs, including some nonrecurring expenses. The company continues to implement cost control measures to alleviate these challenges.

Cash Flow

Net cash from operating activities more than doubled to $13.3 million, increasing from $4.9 million in Q1 2024. This strong cash flow positions the company well for capital investments and debt reduction.

At the end of the quarter, the net cash position improved to negative $4.6 million, compared to negative $14.2 million in Q1 2024. After selling its solar plant in April 2025, Caledonia’s pro forma consolidated net cash position became positive at $18.6 million, enhancing financial flexibility for future growth initiatives.

Operational Review
Blanket Mine

In Q1 2025, Blanket Mine produced 18,671 ounces of gold, a 9.5% increase from 17,050 ounces in Q1 2024. This improvement resulted from higher milled tonnage, which compensated for slightly lower grades. The mine remains on target to meet its production guidance for 2025.

Bilboes Project

The Bilboes oxide mine produced 435 ounces of gold during the quarter, up from 426 ounces in Q1 2024. Efforts are ongoing to finalize the feasibility study for the Bilboes project, with a focus on optimizing the economics in response to updated capital cost projections.

# Caledonia Mining Strengthens Exploration and Safety Measures for 2025

Motapa Exploration

In response to promising drilling results from Motapa in 2024, Caledonia Mining has initiated a $2.8 million exploration program for 2025. The focus will be on both sulphide and oxide resources to enhance its portfolio.

SAFETY IMPROVEMENTS

Under the leadership of Chief Operating Officer James Mufara, appointed in May 2024, the company has undertaken extensive safety enhancements. Key initiatives include:

• Hiring a Group SHE Manager
• Introducing proactive safety indicators
• Improving accident investigation processes
• Implementing real-time monitoring systems
• Adopting the SLAM (Stop, Look, Access, Manage) methodology
• Developing a nearly complete 10-point accident mitigation plan that has reduced incidents
• Launching a Visible Felt Leadership program
• Completing risk assessments
• Enhancing emergency preparedness

LEADERSHIP CHANGES

Caledonia has fortified its board and management team with several key appointments this quarter:

• Stefan Buys and Lesley Goldwasser are now independent non-executive directors.
• Tariro Gadzikwa has been appointed as Audit Committee chair following Johan Holtzhausen’s retirement.
• Ross Jerrard has taken on the role of Chief Financial Officer.

OUTLOOK AND GUIDANCE

The company reaffirms its production guidance for 2025, expecting to yield between 74,000 to 78,000 ounces of gold from Blanket Mine. Cost projections remain stable, with on-mine costs estimated at $1,050-$1,150 per ounce and AISC projected at $1,690-$1,790 per ounce.

For capital expenditure, the forecast for 2025 stands at $41 million, expected to be fully financed through existing cash reserves and operational cash flow.

INVESTOR CONFERENCE CALL

Details of Investor and Analyst Presentation

A presentation for investors and analysts is scheduled as follows:

When: May 12, 2025, at 2:00 PM London time

Topic: Q1 2025 Results Call for Investors

Register in advance for this webinar:

https://brrmedia.news/CMCL_Q1

Enquiries:

Caledonia Mining Corporation Plc Mark Learmonth Camilla Horsfall	Tel: +44 1534 679 800 Tel: +44 7817 841 793
Cavendish Capital Markets Limited (Nomad and Joint Broker) Adrian Hadden Pearl Kellie	Tel: +44 207 397 1965 Tel: +44 131 220 9775
Liberum Panmure (Joint Broker) Scott Mathieson Ailsa MacMaster	Tel: +44 20 3100 2000

This announcement contains inside information disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014 (“MAR”) as part of UK law under the European Union (Withdrawal) Act 2018, fulfilling the Company’s obligations under Article 17 of MAR.

Cautionary Note Concerning Forward-Looking Information

Information contained in this release that is not historical fact is considered “forward-looking information.” This includes expectations regarding Caledonia’s plans, production guidance, and future costs. Such information is subject to risks and uncertainties that could lead actual results to differ significantly from those anticipated. Factors may include the failure to establish resources, variations in ore recovery, and project development delays. It is advised to consider these elements when evaluating forward-looking statements.

Caledonia’s Financial Report Highlights Key Economic Indicators

Security holders, potential security holders, and prospective investors should note that forward-looking statements are subject to known and unknown risks and uncertainties. These factors could lead to actual results differing significantly from expectations. Such risks may include inaccuracies in mineral reserve estimates, fluctuations in gold prices, and hazards related to mineral exploration and mining. Additionally, creditworthiness of suppliers, potential insurance gaps, employee relations, and community interactions raise further concerns. Political risks, natural disasters, public health issues (such as COVID-19), rising input costs, and the inherently speculative nature of mineral exploration also contribute to uncertainties. Other notable risks include the unpredictability of exploration results, capital and operating costs, regulatory challenges, ownership disputes, and competitive pressures within the mining industry. Investors are advised to approach forward-looking information with caution due to its speculative nature.

This news release does not constitute an offer to sell shares of Caledonia, either in the United States or elsewhere. This publication should not be interpreted as a solicitation for investment in any jurisdiction where such offer would be unlawful before proper registration under relevant securities laws.

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Overview of Financial Performance and Key Metrics

Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income (Unaudited)
($’000’s)		3 Months Ended March 31,
		2025		2024		2023
Revenue		56,178		38,528		29,435
Royalty		(2,771	)	(1,934

	(1,480)
Production costs		(22,622)		(18,960)		(19,850)
Depreciation		(3,859)		(3,819)		(2,255)
Gross profit		26,926		13,815		5,850
Net foreign exchange (loss) gain		(1,252)		(4,882)		36
Administrative expenses		(4,598)		(2,611)		(5,938)
Net derivative financial instrument expense		(1,592)		(302)		(434)
Equity-settled share-based credit (expense)		144		(201)		(110)

“`
This reorganized financial data maintains accuracy while enhancing readability and flow.# Company Financial Overview: Key Figures and Insights

## Income Statement Highlights

### Revenue Overview
The latest financial statements reveal significant figures in the revenue category. Notably, the reported revenue figures are as follows:

– **Current Period**: 18,693
– **Previous Year**: 5,330
– **Comparison Period**: (1,498)

### Expenses Breakdown
Examining the expense categories provides insight into the company’s cost structure.

#### Other Expenses
In the other expenses category, the figures are as follows:

– **Current Period**: (843)
– **Previous Year**: (600)
– **Comparison Period**: (640)

### Income Assessment
The income section also shows varied outcomes:

#### Other Income
– **Current Period**: 66
– **Previous Year**: 164
– **Comparison Period**: 18

### Operating Profit (Loss)
The operating profit and loss figures illustrate the company’s performance:

– **Current Period**: 18,693
– **Previous Year**: 5,330
– **Comparison Period**: (1,498)

### Financial Activities
The financial activity section includes important information on income and costs:

#### Finance Income
– **Current Period**: 6
– **Previous Year**: 6
– **Comparison Period**: 5

#### Finance Costs
– **Current Period**: (900)
– **Previous Year**: (732)
– **Comparison Period**: (772)

### Profit Before Tax
The pre-tax profit figures provide a glimpse into profitability:

– **Current Period**: 17,799
– **Previous Year**: 4,604
– **Comparison Period**: (2,265)

### Tax Expense
Lastly, tax expense figures indicate the company’s financial obligations:

– **Current Period**: (6,636)
– **Previous Year**: (2,530)

## Conclusion
The financial overview portrays a significant shift in income and operating profit across the periods, reflecting both challenges and opportunities faced by the company. This data is crucial for stakeholders aiming to understand the company’s fiscal health and operational efficiency.

The presented figures offer a clear overview of the company’s financial trajectory, essential for informed decision-making.“`html

Financial Overview: Latest Comprehensive Income Figures Released

(2,380	)
Profit (loss) for the period		11,163		2,074		(4,645	)
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations		207		(144	)	(369	)
Total comprehensive income for the period		11,370		1,930		(5,014	)
Profit (loss) attributable to:
Owners of the Company		8,915		1,486		(5,356	)
Non-controlling interests		2,248		588

“`# Financial Performance Report: Key Figures and Trends

711
Profit (loss) for the period		11,163		2,074		(4,645	)
Total comprehensive income attributable to:
Owners of the Company		9,122		1,342		(5,725	)
Non-controlling interests		2,248		588		711
Total comprehensive income for the period		11,370		1,930		(5,014	)
Basic earnings (loss) per share (cents)
Basic earnings (loss) per share		44.6		7.3		(32.2	)
Diluted earnings (loss) per share

# Financial Highlights: Q1 2025 Earnings Overview

## Adjusted Earnings Per Share

| **Metric** | **Q1 2025** | **Q1 2024** | **Q1 2023** |
|———————————–|————-|————-|————-|
| **Basic Earnings Per Share (cents)** | 58.5 | 9.7 | (26.3) |
| **Dividends Paid Per Share** | – | 14.0 | 14.0 |

> **Note:** For further details, refer to sections 11 and 12 of the MD&A and section 3.3.3 of the MD&A.

## Summarized Consolidated Statements of Financial Position ($’000s) (Unaudited)

| **As at** | **Mar 31 2025** | **Dec 31 2024** | **Dec 31 2023** |
|—————————–|——————|——————|——————|
| **Total Non-Current Assets** | 290,914 | 287,046 | 274,074 |
| **Income Tax Receivable** | 216 | 355 | 1,120 |

> **Note:** Values for 2025 are restated.

Transitions between periods showcase solid growth, particularly in non-current assets, reflecting strategic investments and effective management. As we analyze these trends, the importance of maintaining financial health is clear. Despite fluctuations in income tax receivable, the overall position indicates resilience in market performance.

In summary, this financial snapshot reveals a robust start to 2025, characterized by improved earnings and strong asset management.# Financial Summary: Key Asset and Liability Figures Unveiled

Inventories	25,317	23,768	20,304
Derivative Financial Assets	–	–	88
Trade and Other Receivables	17,268	12,675	9,952
Prepayments	7,776	6,748	2,538
Cash and Cash Equivalents	8,728	4,260	6,708
Assets Held for Sale	13,520	13,512	13,519
Total Assets	363,739	348,364	328,303
Total Non-Current Liabilities	71,405	68,505	63,970
Cash-Settled Share-Based Payment	674	634	920
Income Tax Payable	4,363	2,958	10
Lease Liabilities	140	95	167
Loans and Borrowings	1,455	1,174	0
Loan Notes	1,093	855	665
Trade and Other Payables	28,222	26,647	20,503

# Financial Overview: Key Metrics and Cash Flow Summary

## Overview of Liabilities

Overdrafts	13,300	12,928	17,740
Liabilities associated with assets held for sale	118	104	128
Total liabilities	120,770	113,900	104,103
Total equity	242,969	234,464	224,200
Total equity and liabilities	363,739	348,364	328,303

^*Refer to section 11 and section 12 of the MD&A.

## Condensed Consolidated Statements of Cash Flows (Unaudited)

($’000s)
	Three months ended March 31,
	2025		2024
Cash inflow from operations	18,709		6,535
Interest received	6		6
Finance costs paid	(543)	(	(573	)
Tax paid

Detailed Financial Activity Report for Recent Quarter

Net cash inflow from operating activities	13,341		4,887
Cash flows used in investing activities
Acquisition of property, plant and equipment	(7,250	)	(3,741	)
Acquisition of exploration and evaluation assets	(1,229	)	(430	)
Acquisition of Put options	(1,592	)	(240	)
Net cash used in investing activities	(10,071	)	(4,411	)
Cash flows from financing activities
Dividends paid	(1,387	)	(2,720	)
Payment of lease liabilities	(181	)	(37	)
Loan notes – solar bond issue receipts (net of transaction cost)	2,387		–
Net cash from / (used in) financing activities	819

# Cash Flow Report Highlights Key Financial Movements

	(2,757	)
Net increase / (decrease) in cash and cash equivalents	4,089		(2,281	)
Effect of exchange rate fluctuations on cash and cash equivalents	7		(847	)
Net cash and cash equivalents at the beginning of the period	(8,668	)	(11,032	)
Net cash and cash equivalents at the end of the period	(4,572	)	(14,160	)

This cash flow analysis illustrates significant changes in financial health. The net increase in cash and cash equivalents is recorded at 4,089, which reflects a dynamic financial period. However, previous values indicate a decline, revealing pressures on liquidity.

The information presented is based on the latest financial data available and reflects current market conditions.