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Caledonia Mining Corp PLC on Monday said it is assessing the impact of proposed changes to the royalty and tax regimes in Zimbabwe, following the country’s national budget presented on Thursday last week. Shares in the Zimbabwe-focused gold miner fell 4.6% to 2,194.00 pence on Monday afternoon in London. Caledonia Mining said it is focusing on the changes as they apply to gold miners, and noted two proposed fiscal measures of relevance to the sector. The first is the proposed increase in the royalty rate to 10% from 5% when the gold price is above $2,000 per ounce. The second measure is the change to the tax treatment of capital expenditure. Caledonia Mining said this change means the current 100% upfront deduction would be instead be spread over the life of the project, thus affecting timing, but not the total amount of tax payable. Caledonia Mining said it is looking at what these proposals mean for its asset portfolio, with particular focus on the effects on the recently announced economics of the Bilboes Gold project. The company said the royalty change, should it be implemented, would be expected to generate a lower level of profitability and cash generation relative to market expectations, with regard to its Blanket mine. ‘Caledonia has a long-standing operating presence in Zimbabwe and continues to engage constructively with the relevant authorities,’ the company said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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