Operations

On 14 April 2025 the Company announced the successful completion of the sale, on April 11, 2025, of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited (“CMS”), to CrossBoundary Energy Holdings (“CBE”) for a pre-tax consideration of $22.35 million payable in cash. CMS owns and operates the 12.2MWac solar plant that supplies power to Blanket Mine. Under the terms of the sale, the solar plant will continue to provide Blanket Mine with power under an exclusive power purchase agreement, ensuring a reliable renewable energy source for the mine.

In September 2024, following a robust bidding process managed by Caledonia’s Zimbabwe financial advisors IH Advisory, Caledonia signed a conditional sale agreement with CBE to sell the solar plant, aligning with its strategy to focus on its core business of gold mining. This agreement allows Blanket Mine to maintain access to clean energy while enabling Caledonia to reallocate capital for growth.

The construction of the solar plant was initially financed by a registered offering of Caledonia’s shares in the USA in 2020, which raised $13 million through the issue of 597,963 shares. Since its commissioning in February 2023, the solar plant has generated over 57,722MWh of power.

Caledonia’s consolidated net debt as at April 9, 2025 (i.e. immediately before the transfer of the cash consideration on April 10, 2025) was $3.8 million (December 31, 2024: net debt $8.7 million).  Accounting for receipt of the cash consideration, Caledonia’s pro forma consolidated net cash balance was $18.6 million.