Update shared on04 Sep 2025
Analysts maintained their $27.50 price target for Caledonia Mining, citing stronger-than-expected gold production, upwardly revised 2025 output guidance, and improved projected free cash flow supporting dividends and debt reduction.
Analyst Commentary
- Bullish analysts highlight stronger-than-expected Q2 gold production from Caledonia Mining’s primary Zimbabwean mine.
- Upward revision in 2025 gold production guidance drives positive outlook.
- Improved free cash flow in 2025 projected to facilitate debt reduction.
- Analysts expect continued funding for the company’s dividend from rising free cash flow.
- Increased guidance and cash generation support a higher price target for shares.
What's in the News
- Q2 2025 gold production at Blanket Mine reached 21,070 ounces, a record for a second quarter and up 1.4% year-over-year.
- H1 2025 gold production totaled 39,741 ounces, a 5.1% increase compared to H1 2024.
- FY 2025 production guidance increased to 75,500–79,500 ounces, with management confirming the company is on track to meet the updated range.
- The company expects to report a profitable Q2 2025, maintaining momentum from the strong Q1 performance.
- Ongoing drilling at Blanket Mine continues to yield positive high-grade results, enhancing resource confidence and supporting resource growth potential below current mining levels.
Valuation Changes
Summary of Valuation Changes for Caledonia Mining
- The Consensus Analyst Price Target remained effectively unchanged, at $27.50.
- The Discount Rate for Caledonia Mining remained effectively unchanged, moving only marginally from 8.00% to 7.94%.
- The Future P/E for Caledonia Mining remained effectively unchanged, moving only marginally from 16.69x to 16.66x.
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