Miners reinvest as Zimbabwe’s Q1 gold earnings go up 30%

Kuvimba looking for expansion
Zimbabwe’s gold miners are enjoying a welcome boost as global gold prices soar to record highs, helping offset rising operational costs and the effects of Government’s hostile foreign currency policies.

In March 2025 alone, the country’s gold export earnings jumped by nearly 90%, rising from US$82.1 million in March 2024 to US$155.8 million, according to latest figures from the Reserve Bank of Zimbabwe. This surge was driven by a combination of increased output and strong international prices.

For the first quarter of 2025, Zimbabwe earned US$396 million from gold exports, a 30% increase compared to US$303 million during the same period last year.

Gold has now breached the US$3,500 per ounce mark for the first time in history, as global investors flock to the metal as a safe-haven asset amid growing economic uncertainty.

Despite headwinds such as rising input costs and currency volatility, Zimbabwe’s gold output reached a record 36.48 tonnes in 2024, 21% more than in 2023, surpassing the industry target of 35 tonnes.

Several leading miners have reported strong results, and are now stepping up investments to take full advantage of the rally.

Dallaglio, operator of Eureka and Pickstone mines, posted a 43% rise in revenues to US$223 million, supported by a 17% increase in production and firmer global prices.

In 2024, Dallaglio invested US$20 million into its operations, and plans a further US$28.5 million for 2025 to support expansion, which includes underground development at Pickstone. The company has invested over US$107 million into mining over the past five years.

Caledonia Mining reported record profits in 2024 and has earmarked US$41 million in capital expenditure for 2025, largely at Blanket Mine.

Meanwhile, Kuvimba Mining, the country’s largest gold producer, plans to invest US$38 million into expanding operations at its flagship Freda Rebecca Mine. Kuvimba is also investing more into exploration drilling at its Shamva Mine.

However, challenges persist. According to a Chamber of Mines survey, energy supply remains the industry’s most pressing concern. Frequent power outages are estimated to be shaving off as much as 10% of potential gold output.

Foreign currency retention policies also remain a sore point. Miners currently receive 70% of their export earnings in US dollars, while 30% must be exchanged for ZiG, at a time when almost all costs are in USD.

Even before RBZ raised the surrender requirement from 25% to 30%, industry players estimated the loss to be equivalent to a 12% tax on gross proceeds.

NewZwire