Caledonia Mining Corporation has raised US$150 million through a seven-year convertible bond issue to finance construction of its Bilboes gold project, a deal that ranks among the largest international capital raisings for Zimbabwe in more than a decade and signals renewed investor appetite for the country’s mining sector.
The Zimbabwe-focused miner said on Wednesday the funds would be used to advance Bilboes, which is expected to become the country’s biggest gold mine once production begins in late 2028. The project is forecast to produce about 200,000 ounces of gold a year from 2029 for an initial mine life of 10 years.
Caledonia, which is listed in New York and London, said demand for the bond issue exceeded $600 million, largely from U.S. institutional investors, underscoring strong interest despite Zimbabwe’s long history of economic instability and policy uncertainty.
“Receiving more than US$600 million of demand from high-quality North American investors is a tremendous endorsement of our strategy, the quality of our assets, our operational track record and the long-term prospects of the company,” Chief Executive Mark Learmonth said in a statement.
The transaction is notable for Zimbabwe, which has struggled for years to attract offshore capital following episodes of hyperinflation, currency instability and abrupt policy shifts that deterred global investors. Mining deals in the country have typically relied on local or regional funding, making Caledonia’s successful international issuance a rare exception.
The bond issue comes as gold prices hover near record highs, supported by strong investor demand for safe-haven assets amid global economic and geopolitical uncertainty. High prices have encouraged miners to expand production and invest in new projects, particularly in gold-rich African countries.
Caledonia already operates the Blanket mine in central Zimbabwe, which produces around 80,000 ounces of gold a year and has been one of the country’s more stable mining operations. The company said the Bilboes project forms a central pillar of its long-term growth strategy.
In addition to the US$150 million bond, Caledonia said it is arranging a further US$150 million funding facility with a consortium of Zimbabwean and South African banks. The company also plans to engage regional and international lenders as it finalises the full financing package for Bilboes.
The total expected cost of developing the project is estimated at US$584 million, with peak funding requirements of about $484 million. Caledonia said the phased financing approach would help manage risk while ensuring the project remains fully funded through construction and ramp-up.
Zimbabwe holds some of Africa’s largest gold reserves, but output has been highly volatile over the past two decades. Production collapsed to about three metric tonnes in 2008 at the height of the country’s economic and political crisis. Since then, output has gradually recovered, more than doubling over the past decade.
Official data show gold production reached a record 47 metric tonnes in 2025, driven by improved prices, increased output from large-scale miners and growing contributions from small-scale producers. The government has prioritised gold as a key foreign currency earner, alongside platinum group metals and diamonds.
Analysts say the success of Caledonia’s bond issue could help reshape perceptions of Zimbabwe’s investment climate, particularly in the mining sector, though they caution that broader investor confidence will depend on consistent policy implementation and macroeconomic stability.
While gold prices have bolstered revenues and encouraged new investment, Zimbabwe’s miners continue to face challenges including power shortages, currency volatility and regulatory uncertainty. Companies are required to navigate a complex operating environment, often balancing the use of local and foreign currencies while managing export proceeds.
For Caledonia, the Bilboes project represents a step-change in scale. At full capacity, the mine would significantly increase the company’s overall production and reinforce its position as one of Zimbabwe’s leading gold producers.
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If delivered on schedule, Bilboes would also strengthen Zimbabwe’s gold output at a time when global demand for the metal remains strong, offering the government a potential boost to export earnings and fiscal revenues.
Whether the deal marks the beginning of a broader return of international capital to Zimbabwe remains uncertain. But for now, Caledonia’s successful US$150 million raise stands out as a rare vote of confidence in a market long viewed as high risk by global investors.
