JERSEY miner Caledonia Mining Corporation’s market value grew by US$338,17 million on the New York Stock Exchange (NYSE), driven by a “much warmer” reception from United States investors over its Bilboes Mine gold potential in Zimbabwe.
In an exclusive interview, Caledonia chief executive officer Mark Learmonth unpacked the factors behind the strong NYSE stock market performance.
These include a rise in investor confidence in Caledonia’s positive findings, indicating that Bilboes Mine could deliver up to five tonnes of gold annually, as there has been a 40% increase in global gold prices, with further price gains expected.
Hence, Caledonia is now seeking to raise US$310 million in capex to bring the Bilboes Mine into full operation.
Unlike Caledonia’s flagship operation, Blanket Mine, in which it has a 64% stake, it fully owns Bilboes, ensuring that shareholders are geared to earn more from the latter.
“Our share price has moved substantially over the course of last year and especially over the last few months,” Learmonth said.
He attributed part of the rally to “an increasing focus on small miners” and a sector-wide “catching up from a historical, multi-year lack of attention”.
But Learmonth stressed that the key catalyst has been a shifting international perception of Zimbabwe itself.
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“We also believe that Zimbabwe is getting a more beneficial reception from international investors, and all of this has been driven by international investors,” he stated.
Learmonth pointed to recent investor roadshows in North America as evidence of this sentiment shift.
“We have been marketing quite recently in North America, in the United States, and we are getting much warmer feedback from investors in the US than we have done historically, which has been really marked,” he said.
Learmonth believes this improvement reflects “absolute changes in Zimbabwe and relative changes as well”, arguing that “compared to other countries, Zimbabwe is improving, both in its own right and in relation to peers”.
Despite the recent rally, he urged a long-term view, suggesting that Caledonia’s performance should be assessed against peers such as DRDGold and Pan African Resources over a three-year horizon.
Learmonth also acknowledged that the company faced a setback in late 2023 when its share price dipped “partly as a result of disappointing operating performance and continued foreign exchange losses”, even as competitors’ stocks rose. Caledonia has since recovered that lost ground.
Looking ahead, the Caledonia CEO expressed strong confidence in the company’s growth trajectory, describing its current valuation as merely “in the foothills” of what lies ahead.
The main driver of future expansion is the development of the Bilboes gold project — a major sulphide asset expected to come online within three to four years.
Acquired in 2022, Bilboes is set to transform Caledonia into a multi-asset gold producer, complementing its flagship Blanket Mine near Gwanda.
Learmonth offered a powerful historical comparison to illustrate the company’s journey.
“When I joined this company in 2008, our market cap was US$3 million. So, we have gone from US$3 million to nearly US$700 million just by growing the business on a relatively small-scale,” he said.
“The growth trajectory ahead of us is multiples of that, so, I would be very disappointed if our share price did not increase commensurately.”
