Prime Highlight 

• Caledonia Mining plans to invest $132 million to develop the Bilboes gold project, set to become Zimbabwe’s largest gold mine. 

• The project is expected to produce its first gold in late 2028 and reach 200,000 ounces annually from 2029, boosting Zimbabwe’s gold output. 

Key Facts 

• Total estimated cost of the Bilboes project is $584 million, funded through a mix of debt, operational cash, and potential streaming agreements. 

• The investment is part of a wider $162.5 million capital expenditure programme for 2026, pending board approval and funding availability. 

Background 

Caledonia Mining Corporation has announced plans to invest $132 million to begin developing the Bilboes gold project, which is expected to become Zimbabwe’s largest gold mine. The investment reflects growing confidence in the country’s mining sector as companies benefit from high global gold prices.

The spending forms part of a wider $162.5 million capital expenditure programme planned for 2026, subject to board approval and funding availability. Caledonia said the Bilboes project represents a major long-term growth opportunity for the company and for Zimbabwe’s gold industry.

Located in Matabeleland South, the Bilboes project is estimated to cost $584 million in total. Caledonia expects the mine to produce its first gold in late 2028. Output is forecast to rise to around 200,000 ounces per year from 2029 and remain at that level for at least 10 years.

Caledonia currently operates the Blanket gold mine, which produces about 80,000 ounces annually. Adding Bilboes will boost the company’s production and make Zimbabwe a stronger gold producer in Africa.

The company will fund the project using a combination of non-recourse senior debt, cash from current operations, and other options like streaming agreements. In these agreements, investors give money upfront and receive gold from the company in the future.

The project has also benefited from recent policy changes by Zimbabwe’s government. Authorities reversed their earlier plans to raise gold royalties and change taxes, making it easier and more attractive for investors.

Mining is Zimbabwe’s largest export sector, generating over 60% of foreign currency earnings from minerals such as gold, platinum and lithium. The Bilboes project is expected to support jobs, investment and economic growth while strengthening the country’s mining future.