Blanket Mine operator seen expanding on bullish targets

📅 Published: August 26, 2025

📰 Source: theindependent

Curated by AllZimNews.com

Caledonia Mining Corporation, which controls Blanket Mine — one of Zimbabwe’s largest gold producers — along with the Bilboes and Motapa assets, is trading at a premium valuation, underscoring strong investor confidence in its growth trajectory.

The company’s price to earnings (P/E) ratio stands at 11,8 times, slightly above the industry average of 11.

Market watchers say this signals greater confidence in Caledonia’s future earnings compared to peers.

In its latest review of Caledonia’s financials for the quarter ended June 30, 2025, brokerage firm IH Securities said the miner was “poised for growth,” after revising its 2025 gold production target upwards to between 75 500 and 79 500 ounces, from an earlier range of 74 000 to 78 000 ounces. “The gold rally has persisted into 2025, with the consensus price for the year hovering around the US$3 500 (per ounce) mark,” IH noted. “Possible catalysts include sustained geopolitical tensions and a potential cut in the (US) federal funds rate, which could further boost gold’s appeal.

Against this backdrop, Caledonia has opted not to engage in further hedging. ”
The bullish outlook mirrors confidence from Zimbabwean authorities, who have highlighted gold’s strong performance in the broader mining sector. “The mining sector has been bullish, driven by gold deliveries which rose to 20,1 tonnes as at end June 2025, up from 13,85 tonnes during the same period in 2024,” the central bank said in its mid-term monetary policy statement two weeks ago. 🔗

” style=”color: #007bff;”>admin@allzimnews. com.

Get the complete story and stay updated with the latest Zimbabwe news

All Zim News aggregates news from a variety of sources for public interest and historical record