Caledonia Mining Corporation Updates Regarding Royalty Rates Following Zimbabwe's Finance Act, 2025

Caledonia Mining Corporation Plc (NYSE:CMCL) is one of the 9 Best Junior Gold Mining Stocks to Buy Now.

Three out of four analysts covering Caledonia Mining Corporation Plc (NYSE:CMCL) have rated the stock as a Buy. The consensus median price target of $38.09 implies a 34.17% upside as of January 5.

On January 6, the passage of Zimbabwe’s Finance Act, 2025, reaffirmed Caledonia Mining Corporation Plc’s (NYSE: CMCL) December 19, 2025 announcement regarding royalty rates. The passing of the Finance bill enacts the 2026 National Budget. It also attests to the previously outlined provisions, which indicate that a higher royalty rate of 10% will only apply in case of the gold price surpassing $5,000 per ounce.

The other proposed changes to the tax and royalty regime announced by Caledonia on December 1 and 19 have been withdrawn, including changes to the tax treatment of Capex, the proposed 15% withholding tax on interest on offshore loans, and any additional adjustments to royalty tiers or mining taxes. During the earlier announcement, the company was expecting changes to its operations in Zimbabwe.

However, with the withdrawal of taxes, the company has confirmed that no changes are required to the Bilboes Gold Project report following the Budget approval. The Bilboes project has proven and probable gold reserves of 1.749 Moz at 2.26 g/t, including measured and indicated resources of 532,000 ounces at 1.37 g/t and 984,000 ounces at 1.62 g/t. Other projects, such as Blanket Mine, will have implications if the gold price surpasses $5,000 per ounce, with a higher royalty rate of 10% applicable.

In other news, on December 23, Caledonia Mining Corporation Plc (NYSE:CMCL) reported that it received notification from Mr. Victor Gapare, who owns a majority stake in Toziyana Resources Limited, that Toziyana purchased 7,457 shares of Caledonia’s common stock. On December 22, Mr. Gapare, through his company Toziyana, bought CMCL shares at a price of $26.83 per share, with a total amount of approximately $200,071. This purchase now reflects Toziyana’s total stake of 12.66% in Caledonia Mining Corporation Plc (NYSE:CMCL).

Caledonia Mining Corporation Plc (NYSE:CMCL) is a development-stage gold mining company. The company primarily operates a gold mine in Jersey and also focuses on the exploration and development of mineral properties for precious metals in Zimbabwe, projects including Blanket Mine, Maligreen, Bilboes, and Motapa.

While we acknowledge the potential of CMCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best New Penny Stocks to Invest In and 13 Best Gold Mining Companies to Invest In Now.

Disclosure: None. This article is originally published at Insider Monkey.