Update shared on24 Sep 2025
Fair value Increased 36%The analyst price target for Caledonia Mining was raised on the back of higher-than-expected Q2 gold production, improved 2025 production guidance, and stronger projected free cash flow supporting debt reduction and dividends, driving the consensus fair value up from $27.50 to $37.50.
Analyst Commentary
- Higher-than-expected gold production reported in Q2 from the primary Zimbabwean mine.
- Increased 2025 gold production guidance signaling improved operational outlook.
- Stronger free cash flow generation projected for 2025.
- Anticipated use of free cash flow to reduce debt and support the dividend.
- Positive market sentiment driven by improved output and disciplined capital allocation.
What's in the News
- Caledonia Mining was added to the S&P/TSX Global Mining Index.
- Full-year 2025 production guidance raised to 75,500–79,500 ounces of gold, reflecting modernization and efficiency efforts.
- Q2 2025 gold production at Blanket Mine reached a record 21,070 ounces, up 1.4% year over year; H1 2025 production rose 5.1% to 39,741 ounces.
- The company anticipates reporting a profitable Q2 2025, following a strong Q1 performance.
Valuation Changes
Summary of Valuation Changes for Caledonia Mining
- The Consensus Analyst Price Target has significantly risen from $27.50 to $37.50.
- The Consensus Revenue Growth forecasts for Caledonia Mining has significantly risen from -0.6% per annum to 0.3% per annum.
- The Future P/E for Caledonia Mining has significantly risen from 16.66x to 20.48x.
Disclaimer
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