• Investment targets Blanket mine, Bilboes development, and Motapa exploration.
• Bilboes construction accounts for $132 million of planned spending.
• Financing for the program, especially Bilboes, remains under review.

Caledonia Mining, a New York Stock Exchange-listed gold producer, plans to invest $162.5 million in 2026 across its gold assets in Zimbabwe. The budget, outlined in an operational update released yesterday, covers the producing Blanket mine, the Bilboes development project, and Motapa, which remains at the exploration stage.

Under the plan, the company intends to allocate $26.6 million to mining operations and sustaining capital at the Blanket mine, where gold output of up to 76,500 ounces is expected in 2026. The Bilboes project, which is set to become Caledonia Mining’s second operating mine in Zimbabwe, is expected to receive $132 million to fund the start of construction works. A further $3.8 million is earmarked for exploration activities at Motapa.

“Our FY 2026 budget reflects our commitment to sustained investment in both our core operations and future growth,” Caledonia Mining chief executive Mark Learmonth said. “The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa where we see long term, value enhancing synergies with Bilboes.”

Financing still to be clarified

While the company intends to anchor these investments in its Zimbabwe-focused growth strategy, several uncertainties remain around funding. The financing mechanisms to be used to mobilize the announced amounts have yet to be detailed. In particular, the budget allocated to Bilboes remains subject to approval by Caledonia Mining’s board of directors.

In November 2025, the company said it was reviewing several financing options for Bilboes, whose development is scheduled to run through 2028 at a total estimated cost of $484 million. These options include the use of senior debt as well as internal equity generated from operations at the Blanket mine.

Reinvestment of cash flows is a common practice in the mining sector and could apply to both Blanket and Motapa. Gold sales revenues for 2025 have not yet been disclosed, but the company reported annual production of 76,213 ounces of gold at Blanket for that year.

The investment announcement comes amid broadly supportive global gold market conditions. After rising by about 70% in 2025, gold prices have already gained around 7% since the start of the year, according to Trading Economics.

Aurel Sèdjro Houenou