Proposed Changes to Royalty and Tax Regimes in Zim
Caledonia Mining Corporation Plc has noted proposed changes to Zimbabwe's royalty and tax regimes for gold miners, including a potential royalty rate increase to 10% on gold prices exceeding US$2,500/oz and a shift from upfront capital expenditure deductions to project-life amortization. The company is assessing the implications for its assets, particularly the Bilboes Gold Project, and anticipates that these changes, if implemented, would reduce profitability and cash generation at its Blanket Mine compared to current expectations. Caledonia continues constructive engagement with authorities and will provide further updates as clarity emerges.
Select text to share a quote on X · sign in to keep highlights & notes in your CMCL notes
St Helier, December 1, 2025 - Caledonia Mining Corporation Plc ("Caledonia" or "the Company") notes the proposed changes announced to the royalty and tax regimes, as they apply to gold miners, in the Republic of Zimbabwe's 2026 National Budget presented by the Minister of Finance, the Honourable Professor Mthuli Ncube, on November 27, 2025.
These include two proposed fiscal measures relevant to the gold sector: an increase in the royalty rate from 5% to 10% when the gold price exceeds US$2,500/oz (with the higher rate understood to apply to the full gold price), and a 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.
The Company is assessing the implications of the proposed changes for its portfolio of assets, including in particular the potential effects on the recently announced economics of the Bilboes Gold Project.
In respect of the Caledonia group's operating mine in Zimbabwe, Blanket Mine, the change in royalty, if implemented, would be expected to result in a lower level of profitability and cash generation relative to current market expectations.
Caledonia has a long-standing operating presence in Zimbabwe and continues to engage constructively with the relevant authorities. The Company will provide a further update once more clarity is available.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.