Caledonia Mining Adjusts Royalty Tax Regime to Support Mining Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy CMCL?
Source: Globenewswire
- Tax Regime Adjustment: The Zimbabwe Finance Minister revised the proposal to increase the royalty rate from 5% to 10% when gold prices exceed $2,500 to only apply if prices exceed $5,000, thereby alleviating potential financial pressure on Caledonia.
- Capital Expenditure Tax Policy: The proposal to change the current 100% upfront deduction of capital expenditure to be spread over the project's life has been withdrawn, meaning Caledonia's tax burden will not increase due to timing changes, maintaining financial stability.
- Withholding Tax Change Withdrawn: The proposal to levy a 15% withholding tax on interest payable on offshore loans has been withdrawn, which, while having little impact on existing operations, helps protect the financing structure of the Bilboes Gold Project, ensuring its smooth progress.
- Future Outlook: Although these proposals have yet to be ratified by parliament, they are expected to be enacted by year-end, with Caledonia anticipating no change in the financial outlook for its portfolio of assets in Zimbabwe as long as gold prices remain below $5,000.
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Analyst Views on CMCL
Wall Street analysts forecast CMCL stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 27.700
Low
45.00
Averages
45.00
High
45.00
Current: 27.700
Low
45.00
Averages
45.00
High
45.00
About CMCL
Caledonia Mining Corporation Plc is a gold production, exploration and development company focused on Zimbabwe. The Company owns a 64% stake in the gold-producing Blanket Mine (Blanket), 100% stakes in the Bilboes mine and the Motapa and Maligreen gold mining claims, all situated in Zimbabwe. The Blanket Gold Mine is a Zimbabwean gold mine, which operates at a depth of approximately 750 meters below surface and produced approximately 55,000 ounces of gold. Blanket also holds brownfield exploration and development projects both on the existing mine area and on its satellite properties which are within trucking distance of the Blanket metallurgical recovery plant. It also holds the Motapa gold exploration property in Southern Zimbabwe. The Maligreen project is a property situated in the Gweru mining district in the Zimbabwe Midlands. The Bilboes is a large, high grade gold deposit located approximately 75 kilometers (km) north of Bulawayo, Zimbabwe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Exchange Listing Application: Caledonia has applied for the admission of depositary interests representing these shares to trading on AIM, anticipated to commence on February 12, 2026, which will further enhance the company's visibility and liquidity in the capital markets.
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- Total Shares Update: Following this issuance, the total number of shares will reach 19,313,028, with no treasury shares, providing a clear denominator for security holders to calculate their interest in the company, ensuring transparency and compliance.
- Exchange Listing Application: Caledonia has applied for the admission of depositary interests representing these shares to trading on AIM, anticipated to commence on February 12, 2026, which will further enhance the company's visibility and liquidity in the capital markets.
- Regulatory Compliance: The share issuance does not involve any
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- Project Potential: The Bilboes project is expected to become Zimbabwe's largest gold mine, with production slated to begin in late 2028 and anticipated annual output of 200K ounces starting in 2029 for an initial 10-year period, significantly enhancing the company's capacity.
- Strong Investor Demand: The bond issuance attracted over $600M in demand from high-quality North American investors, demonstrating the strength of Caledonia's strategy, asset quality, and operational track record, thereby boosting confidence in the company's future.
- Clear Strategic Positioning: The debt issuance is part of Caledonia's broader financing strategy aimed at supporting the Bilboes project, further solidifying its market position in the gold mining industry.
See More
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- Production Outlook: The company anticipates that gold production in 2025 will be nearly identical to 2024, with Blanket mine output at 76,213 ounces, aligning with its guidance of 75,000-79,500 ounces, although slightly down from 76,656 ounces in 2024.
- Cost Warning: For FY 2026, all-in sustaining costs are projected to be between $2,100 and $2,300 per ounce, reflecting higher direct operating costs at Blanket due to inflation and increased expenses compared to the first nine months of 2025.
- Executive Departure: COO James Mufara has left the company, which may impact operations and strategic direction, particularly during this critical phase of project development.
See More
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- Significant Net Income Growth: The company achieved a non-GAAP net income of $2.1 million in Q4, translating to 20 cents per diluted share, a substantial increase from $394,000 or 4 cents per share in the same quarter last year, reflecting enhanced profitability.
- Stock Price Surge: Following the earnings report, RF Industries' shares jumped 21.4% to $8.76 in pre-market trading, indicating strong market optimism regarding the company's future growth potential, which may attract more investor interest.
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See More
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- Interest Rate and Maturity: The notes carry an interest rate of 5.875% and will mature on January 15, 2033, with interest payable semiannually, which will ensure stable financing costs and enhance the company's financial stability.
- Conversion Terms Advantage: Each $1,000 note is convertible into 24.6837 common shares at a conversion price of approximately $40.51, representing a 25% premium over the stock's last closing price on January 14, 2026, offering investors potential capital appreciation opportunities.
- Planned Use of Proceeds: Caledonia expects to net about $120.2 million from the offering, with plans to allocate approximately $12 million for capped call transactions and for general financial flexibility, indicating the company's proactive approach to future investment opportunities.
See More
