JERSEY-DOMICILED miner, Caledonia Mining Corporation, has reported a strong balance sheet in the second quarter of the financial year following the sale of its solar business for US$22,35 million.
During the second quarter ended June 30, 3025, Caledonia completed the sale of its subsidiary, Caledonia Mining Services (Private) Limited, which owns a 12,2 megawatt solar project, to Kenya’s CrossBoundary Energy Holdings for a cash consideration of US$22,35 million.
Following the sale, net cash proceeds of US$21,97 million were realised after transaction costs that supported the balance sheet.
At the end of the quarter, Caledonia reported its total assets at US$389,16 million, up from US$348,36 million in the comparable period last year, owing to a better cash position.
“Caledonia has delivered another strong quarter, highlighted by record second-quarter gold production at Blanket and a substantial increase in profitability, reflecting strong operational performance and a higher gold price environment,” Caledonia chief executive officer Mark Learmonth said in a statement accompanying the firm’s second quarter report.
“The successful sale of our solar plant in April has strengthened our balance sheet and ensured a reliable, long-term renewable energy supply for Blanket Mine.”
During the half year, Caledonia generated operating cash inflows of US$41,3 million, with US$28,1 million coming from the second quarter.
According to the firm, this was driven by higher production at Blanket Mine and a favourable gold price environment.
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“An additional US$22,35 million (pre-tax) was received in the quarter from the sale of the solar plant, further strengthening the group’s cash position,” Caledonia said.
“This strong cash generation supported continued investment in strategic growth. The group invested US$17,7 million during the half year (Q2 2025:US$10,5 million) in property, plant and equipment on key infrastructure at Blanket.
“A further US$3,1 million during the half year (Q2 2025: US$1,8 million) was allocated to exploration and evaluation activities, primarily at Bilboes and Motapa. To optimise short-term returns and strengthen the balance sheet, US$18 million was placed into fixed-term deposits during the quarter.”
Caledonia’s financing activities had a net outflow of US$6 million during the half year and US$6,9 million during the quarter, driven by net proceeds from loans and bond issuance for supporting capital projects.
It was further boosted by an outflow of US$9 million (Q2 2025: US$7,6 million) returned to Caledonia and Blanket minority shareholders through dividends.
“Additionally, US$0,1 million (Q2 2025: US$0,1 million) paid lease liabilities in the period. As a result of all the key movements above, cash and cash equivalents increased by US$16,9 million during the half year (Q2 2025: US$12,8 million) to US$8,2 million,” Caledonia said.
“This reflects Caledonia’s prudent treasury management and balanced approach to deploying capital for both growth and shareholder returns.”
Caledonia is continuing with its ongoing drilling campaign at Blanket Mine, which continues to demonstrate encouraging results, improving its mineral resource and pointing to growth.
“The grades and widths we are seeing from this drilling campaign are as good as and, in some cases, considerably better than results from previous drilling campaigns. We are encouraged by the progress on the Bilboes feasibility study, and we continue to evaluate opportunities that could materially improve project economics,” Learmonth said.
“At the same time, our exploration programme at Motapa is advancing well, with a clear focus on identifying both sulphide and oxide resources that could support near-term production and longer-term growth.
“Looking ahead, we remain focused on delivering our increased production guidance at Blanket, and advancing our growth pipeline in a way that maximises long-term value for shareholders.”
He said Caledonia was well-positioned to continue building on this positive momentum, with a strong operational base and a clear strategic road map.
Revenue for the quarter was up 30% to US$$65 million, from the same period last year.
