Caledonia cuts Blanket output guidance after operational setbacks - MiningMX

AI desk brief

Caledonia Mining cut 2026 Blanket gold output guidance to 69,000-72,500 oz from 72,000-76,500 oz after third-quarter operational issues, while raising on-mine cost guidance to $1,700-$1,900/oz from $1,600-$1,800/oz and AISC to $2,650-$2,850/oz from $2,500-$2,700/oz. Q3 production fell 11% y/y to 17,030 oz and nine-month output dropped to 49,158 oz from 58,846 oz, with the shares down 5.6% in early London trade.

Management said production should normalize in Q4 as compressor shortages are resolved, ~1,100 oz retained in the plant begins to be recovered from mid-October, and additional ore is processed at Lima. The weaker Blanket performance is relevant for supply only at the margin, but Caledonia said it does not impair internal cash flow support for the planned Bilboes project, which is expected to produce about 200,000 oz/year from 2029.