Caledonia Mining Corporation reported third quarter 2026 revenue of $78.9 million, a 10.5% increase year-over-year that significantly exceeded analyst estimates. However, the company missed earnings expectations with basic EPS of $0.11, down from $0.77 in the prior year, primarily due to operational headwinds at the flagship Blanket Mine and a $12.9 million non-cash fair value loss on derivative financial instruments associated with convertible notes and gold hedges.
Key Highlights
- Revenue rose to $78.9 million driven by a record average realized gold price of $4,134/oz, compared to $3,434/oz in the third quarter of 2025.
- Gold production at the Blanket Mine fell 11% to 17,030 ounces due to compressed air shortages at deeper mining levels and approximately 1,100 ounces of gold becoming temporarily locked in the metallurgical plant.
- All-in sustaining costs (AISC) increased to $2,344 per ounce sold, up from $1,937 YoY, reflecting higher on-mine costs absorbed over lower production volumes.
- Full-year 2026 production guidance for Blanket was revised downward to a range of 69,000–72,500 ounces, while capital expenditure guidance was adjusted to $94.3 million.