Caledonia
notes
that,
on
December
17,
2025,
the
Zimbabwe
Minister
of
Finance
announced
certain
changes
to
these
proposals
in
the
second
reading
of
the
2026
National
Budget
to
the
Zimbabwe
parliament,
specifically;
-
The
proposal
to
increase
the
royalty
rate
from
5%
to
10%
when
the
gold
price
exceeds
US$2,500
per
ounce
will
now
only
apply
should
the
gold
price
exceed
$5,000
per
ounce. -
The
proposed
change
to
the
tax
treatment
of
capital
expenditure
whereby
the
current
100%
upfront
deduction
would
instead
be
spread
over
the
life
of
the
project,
affecting
the
timing,
but
not
the
total
amount
of
tax
payable,
has
been
withdrawn. -
The
proposed
change
to
levy
withholding
tax
at
15%
on
interest
payable
on
offshore
loans
has
been
withdrawn.
Whilst
this
provision
would
have
had
little
effect
on
Caledonia’s
existing
operations,
it
would
have
had
an
adverse
effect
on
the
Bilboes
Gold
Project,
which
Caledonia
currently
expects
to
fund
with
a
large
proportion
of
offshore
debt.
The
revised
proposals,
which
have
not
yet
been
ratified
by
parliament,
but
are
expected
to
be
enacted
before
the
end
of
the
year,
should
result
in
no
change
in
the
financial
outlook
for
Caledonia’s
portfolio
of
assets
in
Zimbabwe
provided
the
gold
price
remains
below
$5,000
per
ounce.
Mark
Learmonth,
Chief
Executive
Officer
of
Caledonia,
commented:
“The
2026
National
Budget
of
Zimbabwe
is
yet
to
be
enacted
into
law.
However,
we
welcome
the
revised
provisions
announced
this
week
which
we
believe
demonstrate
the
Government
of
Zimbabwe’s
support
for
the
mining
sector
and
the
development
of
future
mining
projects
in
the
country.”
Enquiries:
|
Caledonia Mining Corporation Plc Mark Learmonth Camilla Horsfall |
Tel: +44 1534 679 800 Tel: +44 7817 841 793 |
|
Cavendish Capital Markets Limited (Nomad and Broker) Adrian Hadden Pearl Kellie |
Tel: +44 207 397 1965 Tel: +44 131 220 9775 |
|
Camarco, Financial PR (UK) Gordon Poole Elfie Kent |
Tel: +44 20 3757 4980 |
|
Curate Public Relations (Zimbabwe) Debra Tatenda |
Tel: +263 77802131 |
|
IH Securities (Private) Limited (VFEX Sponsor – Zimbabwe) Lloyd Mlotshwa |
Tel: +263 (242) 745 119/33/39 |
CAUTIONARY
NOTE
CONCERNING
FORWARD-LOOKING
STATEMENTS
Information
and
statements
contained
in
this
document
that
are
not
historical
facts
are
“forward-looking
information”
or
“forward-looking
statements”
(collectively,
“forward-looking
statements”)
within
the
meaning
of
applicable
securities
legislation
that
involve
risks
and
uncertainties
relating,
but
not
limited,
to
Caledonia’s
current
expectations,
intentions,
plans,
and
beliefs.
Forward-looking
statements
can
often
be
identified
by
forward-looking
words
such
as
“anticipate”,
“believe”,
“expect”,
“goal”,
“plan”,
“target”,
“intend”,
“estimate”,
“could”,
“should”,
“may”
and
“will”
or
the
negative
of
these
terms
or
similar
words
suggesting
future
outcomes,
or
other
expectations,
beliefs,
plans,
objectives,
assumptions,
intentions
or
statements
about
future
events
or
performance.
Examples
of
forward-looking
statements
in
this
document
include:
our
expectation
that
the
proposed
changes
to
the
royalty
and
tax
regimes
will
be
enacted
as
set
out
in
this
document;
and
that,
as
a
result,
we
expect
no
change
to
the
financial
outlook
for
Caledonia’s
portfolio
of
assets
in
Zimbabwe.
These
forward-looking
statements
are
based,
in
part,
on
assumptions
and
factors
that
may
change
or
prove
to
be
incorrect,
thus
causing
actual
results,
performance
or
achievements
to
be
materially
different
from
those
expressed
or
implied
by
forward-looking
statements.
Security
holders,
potential
security
holders
and
prospective
investors
should
be
aware
that
forward-looking
statements
are
subject
to
known
and
unknown
risks,
uncertainties
and
other
factors
that
could
cause
actual
results
to
differ
materially
from
those
suggested
by
the
forward-looking
statements.
Such
factors
include,
but
are
not
limited
to:
risks
relating
to
estimates
of
mineral
reserves
and
mineral
resources
proving
to
be
inaccurate,
fluctuations
in
gold
price
and
payment
terms
for
gold
sold,
risks
and
hazards
associated
with
the
business
of
mineral
exploration,
development
and
mining
(including
environmental
hazards,
industrial
accidents,
unusual
or
unexpected
geological
or
structural
formations,
pressures,
power
outages,
fire,
explosions,
landslides,
cave-ins
and
flooding),
risks
relating
to
the
credit
worthiness
or
financial
condition
of
suppliers,
refiners
and
other
parties
with
whom
the
group
does
business,
inadequate
insurance,
or
inability
to
obtain
insurance,
to
cover
these
risks
and
hazards,
employee
relations,
relationships
with
and
claims
by
local
communities
and
indigenous
populations,
political
risk,
risks
related
to
natural
disasters,
terrorism,
civil
unrest,
public
health
concerns
(including
health
epidemics
or
outbreaks
of
communicable
diseases
such
as
the
coronavirus
(COVID-19)),
availability
and
increasing
costs
associated
with
mining
inputs
and
labour,
the
speculative
nature
of
mineral
exploration
and
development,
including
the
risks
of
obtaining
or
maintaining
necessary
licenses
and
permits,
diminishing
quantities
or
grades
of
mineral
reserves
as
mining
occurs,
global
financial
condition,
the
actual
results
of
current
exploration
activities,
changes
to
conclusions
of
economic
evaluations,
and
changes
in
project
parameters
to
deal
with
unanticipated
economic
or
other
factors,
risks
of
increased
capital
and
operating
costs,
environmental,
safety
or
regulatory
risks,
expropriation,
the
Group’s
title
to
properties
including
ownership
thereof,
increased
competition
in
the
mining
industry
for
properties,
equipment,
qualified
personnel
and
their
costs,
risks
relating
to
the
uncertainty
of
timing
of
events
including
targeted
production
rate
increase
and
currency
fluctuations,
and
the
other
risks
discussed
in
Caledonia’s
most
recent
Form
20-F
annual
report
and
other
filings
made
with
the
U.S.
Securities
and
Exchange
Commission.
Security
holders,
potential
security
holders
and
prospective
investors
are
cautioned
not
to
place
undue
reliance
on
forward-looking
statements.
By
their
nature,
forward-looking
statements
involve
numerous
assumptions,
inherent
risks
and
uncertainties,
both
general
and
specific,
that
contribute
to
the
possibility
that
the
predictions,
forecasts,
projections
and
various
future
events
will
not
occur.
Caledonia
reviews
forward-looking
statements
for
the
purposes
of
preparing
each
announcement;
however,
Caledonia
undertakes
no
obligation
to
update
publicly
or
otherwise
revise
any
forward-looking
statements
whether
as
a
result
of
new
information,
future
events
or
other
such
factors
which
affect
these
statements,
except
as
required
by
law.
Post
published
in:
Business