Caledonia Mining Corporation Plc: Zimbabwe government amends proposed changes to the royalty and tax regimes

Core Viewpoint - Caledonia Mining Corporation Plc is responding to proposed changes in the royalty and tax regimes for gold miners in Zimbabwe, which are expected to have no adverse impact on its financial outlook if gold prices remain below $5,000 per ounce [2][3]. Summary by Relevant Sections Proposed Changes - The Zimbabwe Minister of Finance announced revisions to the royalty and tax proposals in the 2026 National Budget, which are anticipated to be enacted by the end of the year [2]. - The royalty rate increase from 5% to 10% will now only apply if gold prices exceed $5,000 per ounce, a change from the previous threshold of $2,500 per ounce [5]. - The proposed change to tax treatment of capital expenditure, which would have spread the 100% upfront deduction over the project's life, has been withdrawn, maintaining the current tax structure [5]. - The 15% withholding tax on interest payable on offshore loans has also been withdrawn, which would have impacted the Bilboes Gold Project funding [5]. Company Perspective - The CEO of Caledonia expressed support for the revised provisions, indicating they reflect the Zimbabwean government's backing for the mining sector and future projects [3]. - The company expects no change in the financial outlook for its Zimbabwean assets due to these revisions, provided gold prices remain stable [2][3].