Zimbabwe gold miner Caledonia sells 12MW solar plant to Kenyan firm CrossBoundary Energy for $22.35mn

A top gold producer in Zimbabwe, Caledonia Mining Corp. (Caledonia), has concluded the sale of its 12.2-megawatt (MW) solar plant to Kenya-based CrossBoundary Energy (CBE) for $22.35mn.

Caledonia, which is listed on the AIM, NYSE and Zimbabwe's Victoria Falls Stock Exchange (VFEX) said in a release on April 14 that the sale of the facility at its flagship Blanket Mine in southern Zimbabwe enables it to concentrate on its core business of gold mining.

Commissioned in February 2023, the plant will continue to provide Blanket Mine with electricity under an exclusive power purchase agreement.

"We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations," Caledonia CEO Mark Learmonth commented.

"By selling the plant for $22.35mn, Caledonia realises a profit on the $14.3mn construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20% of Blanket Mine's daily electricity needs continue to be met by renewable energy."

This concludes a process that started in September 2024 when Caledonia and CBE signed a conditional sale agreement.

Matthew Tilleard, managing partner at CBE said:

"The acquisition of Blanket Mine's solar PV facility is part of CrossBoundary Energy's ongoing commitment to providing the best energy solutions for the sector. Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power, whilst freeing up capital for its value-generating mining activities."

Meanwhile, Blanket Mine produced 18,671 ounces (oz) of gold in the March 2025 quarter, exceeding 17,050oz it produced in the corresponding period in 2024. The output is a quarterly record for the asset, Caledonia said in a release on April 15. The previous record was the 18,515oz the mine produced in the first three months of 2022.

This keeps the mine on track to meet its 2025 production guidance of between 74,000oz and 78,000oz.

Learmonth hailed the achievement realised in a quarter which is traditionally the mine's weakest as it coincides with the peak of Zimbabwe's rainy season.

"This is an excellent start and with a strong gold price we are well positioned to generate healthy cash flows and to continue investing in our growth projects," he said.