Exploration at Blanket

Announced on June 23, 2025, the results from 6,976 metres of underground drilling at Blanket from January 2024 to the end of April 2025 indicate that the existing Blanket and Eroica orebodies have grades and widths which are generally better than expected, while the Lima orebody is shown to continue below 22 level (750 metres). A new potential orebody has been intersected in the Blanket orebody area of the mine, with impressive grades and widths. These results will form part of the planned mineral resource update anticipated to be published by year end.

In addition to underground exploration drilling, Blanket has commenced a surface exploration project within the area held under the Blanket Mine mining lease. The program is targeting the Banded Iron Formation ("BIF") which strikes in a north-westerly direction and has been exploited at the nearby Vubachikwe and Sabiwa gold mines. The BIF extends from the southern boundary of the Blanket Mine lease area through to the northern boundary and beyond.

Initial work comprised Induced Polarisation ("IP") and Ground Magnetic ("GM") surveys over a selected area. These surveys delineated anomalous zones over a 600-metre strike length which subsequent surface reconnaissance mapping and pitting has shown to be quartz filled shear zones hosted within the BIF. Grab samples from shallow surface pits returned assay values ranging between 0.59 and 32.12 g/t from analysis at the Blanket Mine assay laboratory.

2025 Production, cost and capital expenditure guidance

As announced on July 16, 2025, Blanket’s production guidance for 2025 increased from 74,000 - 78,000 ounces to 75,500 - 79,500 ounces. Guidance for Blanket's on-mine cost per ounce is unchanged at $1,050 - $1,150; guidance for all-in sustaining cost ("AISC") per ounce is unchanged at $1,690 - $1,790.

Guidance for the 2025 capital expenditure programme is unchanged at $41.0 million, with $34.1 million allocated to Blanket and $6.9 million at Bilboes and Motapa. These investments aim to modernise operations and improve mining efficiency at Blanket. While there will be short-term cost pressures, the long-term goal is to reduce costs, improve profitability and operational resilience and extend Blanket's mine life and thereby ensure the continued success of Blanket. All expenditure will be funded from cash generation and cash reserves with no anticipated impact on the dividend. Capital expenditure for 2025 is further discussed in section 4.9.

Change in directors and management

Mr. Johan Holtzhausen, who has served on the Board since 2013, did not seek reappointment by shareholders at the annual general meeting of shareholders which was held on May 6, 2025 and therefore retired from the Board and as chair of the Audit Committee with effect from that meeting. Ms. Tariro Gadzikwa, an independent non-executive director, was appointed by the Board to take over from Mr. Holtzhausen as chair of the Audit Committee immediately after the annual general meeting.

Change in quarterly reporting

Caledonia Mining Corporation plc will no longer publish financial statements and management’s discussion and analysis (MD&A) reports on a quarterly basis in accordance with Canadian securities regulations. This decision aligns with applicable exemptions under Canadian securities regulations, including National Instrument 71-102 – Continuous Disclosure and Other Exemptions Relating to Foreign Issuers, and reflects our status as an SEC foreign issuer with equivalent disclosure obligations outside Canada.

We remain fully committed to transparent and timely disclosure of material information through the publication of our annual and half-yearly financial statements and via recognised regulatory channels, and going forwards, we anticipate publishing revenue, costs and production results for the quarters for which we do not release detailed financial results (namely, the first and third quarters). This change does not affect our obligation to disclose any significant developments or risks that may materially impact the Group’s financial position or performance. We will continue to provide comprehensive MD&A commentary as part of our annual and semiannual reporting cycle.

Strategy and Outlook: increased focus on growth opportunities

The immediate strategic focus is to:

The strategy and outlook of Caledonia is further discussed in section 4.9 of this MD&A.

3. SUMMARY FINANCIAL RESULTS

The table below sets out the consolidated profit or loss for the Quarter and the comparative periods prepared under IFRS.

3.1 Revenue analysis

The table below reconciles “Average realised gold price per ounce” to the revenue shown in the financial statements, which have been prepared under IFRS.

Revenue in the Quarter was 30.3% higher than the comparative quarter due to a 38.5% increase in the average realised price of gold sold marginally offset by a 5.9% decrease in ounces sold. Sales in the Quarter exclude 4,115 ounces (Q2 2024: 1,066) of gold that were held as work-in-progress at the end of the Quarter and were sold early in July 2025; sales for the Quarter include 3,159 ounces of gold sold that were held as work-in-progress as at March 31, 2025.

The royalty rate payable to the Government of Zimbabwe was unchanged at 5%.

3.2 Production, other cost and other income analysis

3.2.1 Cost per ounce

Non-IFRS performance measures such as “on-mine cost per ounce”, “all-in sustaining cost per ounce,” and “all-in cost per ounce” are used in this document. Management believes these measures assist investors and other stakeholders in understanding the economics of gold mining over the life cycle of a mine. These measures are calculated on the principles set out by the World Gold Council and are further explained below.

1. On-mine cost per ounce, which shows the on-mine costs of producing an ounce of gold and includes direct costs that are incurred on day-to-day activity for the mine and excludes once-off retirement and severance costs. ESG costs were included in the on-mine cost as well as in the comparative amounts due to the increased focus on ESG;

2. AISC per ounce, which shows the on-mine cost per ounce plus royalty paid, additional costs incurred outside the mine (i.e., at offices in Harare, Bulawayo, Johannesburg and Jersey), capital costs required to maintain production at the current levels (sustaining capital investment), the share-based expense (or credit) arising from the awards made to employees under the 2015 Omnibus Equity Incentive Compensation Plan (“OEICP”) less silver by-product revenue; and

3. All-in cost per ounce, which shows the all-in sustaining cost per ounce plus the costs associated with activities that are undertaken with a view to increasing production (expansion capital investment). Exploration and evaluation costs were included in the all-in cost as well as in the comparative amounts.

A narrow focus on the direct costs of production does not reflect the cost of gold production under IFRS and adds certain capital and other costs. The table below reconciles non-IFRS cost measures to the production costs shown in the financial statements prepared under IFRS.

^{* The on-mine cost reflects the cost incurred on-mine to produce gold. The procurement margin on consumable sales between CMSA and Blanket is not deducted from on-mine cost as the cost represents a fair value that Blanket would pay for consumables if they were sourced from a third party. The procurement margin on these sales is deducted from all-in sustaining cost and all-in cost as these numbers represent the consolidated costs at a group level, excluding intercompany profit margins.}

^{& Administrative expenses relate to costs incurred by the Group to provide services for mining and related activities. Administrative expenses are allocated between AISC and All-in cost.}

^{# Non-sustaining costs are primarily those costs incurred at ‘new operations’ and costs related to ‘major projects at existing operations’ where these projects will materially benefit the operation. All other costs related to existing operations are considered sustaining.}

On-mine cost per ounce

On-mine costs comprise electricity, labour, consumables, administrative, and other costs directly related to production, such as insurance, Blanket's software licensing, ESG and security.

On-mine production cost per ounce increased by 10.9% in the Quarter compared to the comparative quarter.

The increase in on-mine cost per ounce in the Quarter, compared to the comparative quarter is illustrated in the graph below.

At Blanket, on-mine production cost increased by 10.7% from $995 per ounce in the comparative quarter to $1,102 in the Quarter. On-mine cost at Blanket exclusive of corporate social responsibility ("CSR") projects cost amounted to $1,078 per ounce.

Labour cost increased by $45 per ounce due to a higher headcount, 2025 inflationary increases, bonuses paid and overtime worked. On-mine production bonus payments were paid at maximum achievement level because production exceeded target for the Quarter and resulted in a new production record for a second quarter. A new clocking system, Firefly, was implemented in Q2 2025 and is expected to improve the management of our labour force and reduce inefficient labour allocation in future.

Consumable costs per ounce at Blanket in the Quarter increased by $47 due to higher repair and maintenance costs at the metallurgical plant and on underground trackless mining machinery in the Quarter compared to the comparative quarter.

Other production costs increased by $19 per ounce due to inflationary increases in ZiG-denominated security, telecom expenses and water levies. Licences for new IT software acquired in 2024 as part of the ongoing modernisation of the business also contributed to the increase in other production costs.

Power costs per ounce decreased by $18 due to reduced reactive energy penalty charges after power factor correction equipment was installed in November 2024. Following the installation of electricity measuring systems in the previous quarter, management is evaluating the current electricity infrastructure, usage and supply to reduce electricity consumption and identify alternative sources of energy with a view to improving reliability and quality of supply and reducing operating costs.

The cost of heap leaching activities at Bilboes marginally increased from the comparative quarter by $5 per ounce. Leaching will continue for as long as it makes a positive cash contribution after the cost of leaching is incurred. Bilboes is discussed further in section 4.9.

All-in sustaining cost

All-in sustaining cost includes inter alia administrative expenses incurred outside Zimbabwe and excludes the intercompany procurement margin and deducts the solar power intercompany profit, prior to the sale of the solar plant on April 11, 2025, as this reflects the consolidated cost incurred at the Group level. The all-in sustaining cost per ounce for the Quarter was 21.5% higher than the comparative quarter predominantly due to higher on-mine costs, increased administrative costs, and sustaining capital expenditure. Sustaining capital expenditure includes underground capital development, IT software installation predominantly to enhance the on-mine resource management planning abilities, exploration at Blanket, electrical and surface engineering (as detailed in section 3.4). Following the commissioning of Central Shaft and the new TSF, further capital expenditure on these projects is classified as sustaining capital expenditure, rather than expansion capital expenditure. This means that more of the Blanket capital expenditure is allocated to sustaining capital expenditure rather than to expansion (non-sustaining) capital investment which is included in the calculation of all-in cost. AISC includes approximately $48 per ounce in respect of cash and equity settled share-based expenses relating to LTIP awards to employees and the increased share price in the Quarter.

The increase in AISC per ounce in the Quarter compared to the comparative quarter is illustrated in the graph below:

All-in cost

All-in cost includes investment in capital expansion projects at Blanket and exploration and evaluation expenditure on projects. Capital projects at Blanket are discussed in section 4.4 and exploration and evaluation projects are discussed in section 5 for Bilboes and Motapa.

3.2.2 Administrative Expenses

Administrative expenses are detailed in note 8 to the Consolidated Interim Financial Statements and include the costs of Caledonia’s offices and personnel in Harare, Johannesburg, Bulawayo, the UK and Jersey, which provide the following functions: feasibility study, technical services, finance, procurement, investor relations, corporate development, legal and company secretarial.

Administrative expenses in the Quarter were 19.1% higher than the comparative quarter, primarily driven by an increase in employee headcount and a settlement payment to the former Chief Financial Officer. Additionally, costs that were reclassified as administrative costs in the second quarter of 2024 contributed to the rise. The inclusion of a bonus provision for 2025 further amplified expenses, contrasting with the comparable quarter, which had a lower bonus provision due to subdued performance up to end of Q2 2024.

3.2.3 Depreciation, foreign exchange (losses) gains and other expenses

The depreciation charge in the Quarter marginally decreased to the comparable quarter because of assets that were fully impaired in the last quarter of 2024.

Net foreign exchange movements in the Quarter relate to profits and losses arising on monetary assets and liabilities that are held in currencies other than the USD - principally the ZiG and, to a lesser extent, the South African Rand and the British Pound. The total net foreign exchange loss in the Quarter amounted to $1.0 million, and the net losses were predominantly due to the marginal devaluation of the ZiG rate against the USD, which contributed $0.7 million to the overall exchange losses for the period. Foreign exchange losses on the ZiG were incurred on ZiG to USD conversions on the Willing Buyer Willing Seller (WBWS) platform where considerable conversions of $7.2 million were made in the Quarter. To a lesser extent, exchange losses were realised on the ZiG-denominated prepayments, receivables for gold sales and VAT refunds which reduced in value in US Dollar terms between the date they were recognised and the reporting date. Unrealised foreign exchange losses on USD-denominated intercompany loans of approximately $0.3 million were incurred due to the strengthening of the South African Rand in the Quarter. The foreign exchange losses on intercompany loans are not expected to have a cash flow effect in the short term.

CSR cost amounted to $0.5 million in the Quarter. CSR is further discussed in section 4.2.

Other expenses include Intermediate Monetary Transaction Tax of $0.6 million for the Quarter that is chargeable on the transfer of physical money, electronically or by any other means and is charged at 2% per transaction performed in Zimbabwe.

3.2.4 Tax expense

The overall effective taxation rate for the Quarter was 32.5% (Q2 2024: 33.6%). The effective tax rate bears little relationship to the reported consolidated profit before tax.

The effective consolidated tax rate is higher than the enacted rate of Zimbabwean income tax due to the following reasons:

The effective taxation rate for Blanket was 26.7% (2024: 26.0%), which closely corresponds to the enacted Zimbabwean income tax rate applicable in 2025 of 25.75%.

From January 1, 2023 the Zimbabwean taxable income was calculated and paid in the proportion in which income was received.

From July 1, 2024, where a taxpayer's income is earned more than 50% in USD, the taxable income is calculated and paid on a USD50:ZiG50 basis.

Deferred tax predominantly comprises the difference between the accounting and tax treatments of capital investment expenditure. Most of the tax expense comprised income tax and deferred tax incurred in Zimbabwe.

South African income tax arises on intercompany profits arising at Caledonia Mining South Africa Proprietary Limited (“CMSA”) on goods sold and intergroup services rendered.

Zimbabwe withholding tax arose on the management fees paid to CMSA and on dividends paid from Caledonia Holdings Zimbabwe (Private) Limited (“CHZ”) to the Company’s subsidiary in the UK Greenstone Management Services Holdings Limited (“GMS-UK”).

3.2.5 Basic EPS

Basic IFRS EPS for the Quarter improved by 154% from 41.6 cents in the comparative quarter to 105.7 cents in the Quarter. Adjusted EPS for the Quarter excludes inter alia the effect of intercompany foreign net exchange movements and deferred tax. Adjusted EPS increased from 44.6 cents in the comparative quarter to 113.9 cents for the Quarter. A reconciliation from Basic IFRS EPS to adjusted EPS is set out in section 10.

3.3 Cash flow analysis

The table below sets out the summarised cash flows for the quarters ended June 30, 2025 and 2024 prepared under IFRS.

^{*includes cash inflow of $21,966 for proceeds from the sale of non-current assets held for sale (net of selling costs)}

3.3.1 Operating Activities

Cash flows from operating activities in the Quarter are detailed in note 24 to the Consolidated Interim Financial Statements. Cash inflows from operations before working capital changes in the Quarter were $31.2 million, compared to $24.8 million in the previous Quarter.

Cash flows from operations before working capital changes in the Quarter were 57.8% higher than the comparable Quarter predominantly due to higher gold prices received on gold sales.

The working capital movements in the Quarter resulted in a $3.4 million inflow primarily driven by a reduction in the gold sales receivables due to the timing of gold deliveries. Inventory levels were higher due to an increase of 17,671 tonnes in the stockpile during the Quarter. The stockpile reflects the significant improvement in mine performance in the Quarter, which now exceeds milling capacity, as discussed in section 4.3. Increased inventory spares were required to sustainably operate Blanket’s rock breakers, crushers, pneumatic air compressors, generators and trackless mining machinery. During the Quarter, Blanket received VAT refunds of US$6.7m from the Zimbabwe Revenue Authority (“ZIMRA”), which were offset against income tax and withholding tax. As at June 30, 2025 a balance of $1.9m in ZiG refunds was unutilised and will be applied against taxes payable in the third quarter of 2025.

Prepayments increased during the Quarter, as ZiG prepayments were made to suppliers to reduce cash held in ZiG and thereby mitigate the effects of devaluations in the ZiG. This strategy resulted in an additional $3.5 million in prepayments made by June 30, 2025 to lock in prices of goods denominated in ZiG.

3.3.2 Investing activities

The acquisition of property, plant and equipment relates to the investment at Blanket as discussed further in section 4.4; the investment in exploration and evaluation assets relates to the exploration work at Motapa.

3.3.3 Financing activities

Financing activities for the Quarter include dividends of $2.4 million paid to Blanket’s minority shareholders. During the quarter, Nedbank Zimbabwe Limited extended a 3-year term loan of $1.3 million for the acquisition of vehicles.

As previously advised, Caledonia has re-phased the declaration and payment of dividends to coincide with the scheduled board meetings to approve the publication of Caledonia's quarterly results. Caledonia declared a dividend of 14 cents per share on May 12, 2025 which was paid on June 6, 2025.

3.3.4 The effect of exchange rate fluctuations

The effect of exchange rate fluctuations on cash held reflects gains or losses on cash balances held in currencies other than the US Dollar. The effect on cash balances forms part of an overall foreign exchange gain or loss arising on all affected monetary assets and liabilities.

3.3.5 Overdraft facilities and term loans

Operating and investing activities at Blanket in the Quarter were funded by Blanket's operating cash flows and from Blanket’s overdraft facilities which were as set out below at June 30, 2025.

3.3.6 Hedging

From December 2022 the Company had the following put options to hedge gold price risk:

Caledonia has historically engaged in hedging to lock in a gold price so that Caledonia could continue its planned investment activities and maintain the dividend. Hedging activities comprise the purchase of “out-of-the-money" put options which are purchased for a one-off fee and lock in a minimum price over the number of ounces that are subject to the hedge. The entire cost of the outstanding options was recognised in the previous quarter because management believes there is little prospect that these options will have value due to the significant increase in the gold price. Following receipt of the proceeds of the sale of the solar plant in April 2025, Caledonia's net cash position has improved. Accordingly, Caledonia does not intend to engage in further hedging for the foreseeable future.

3.3.7 Bonds

In December 2022, a proposal for Caledonia Mining Services (Private) Limited (“CMS”) (the company owning the solar power plant) to issue bonds up to a value of $12 million in the form of bonds was approved. The decision was taken to optimise the capital structure of the Group and provide additional debt instruments to the Zimbabwean financial market. The bonds have a fixed interest rate of 9.5% payable bi-annually and have a tenor of 3 years from the date of issue. The bond repayments are guaranteed by the Company, and up to the date of this MD&A, $11.6 million of bonds have been issued to Zimbabwean commercial entities. Due to the sale of CMS, the bonds were transferred to CHZ, a wholly owned subsidiary of Caledonia, so that Caledonia could maintain and develop its relationships with Zimbabwe’s institutional debt investors.

3.4 Analysis of financial position

The table below sets out the consolidated statements of Caledonia’s financial position at the end of the Quarter and December 31, 2024 and December 31, 2023 prepared under IFRS.

Property, plant and equipment additions at Blanket amounted to $10.1 million in the Quarter (inclusive of intercompany mark-up). The additions during the Quarter predominantly related to:

The total capital expenditure for 2025 at Blanket is planned at $34.1 million and full year spend is expected to be within the guidance levels.

Inventory, trade receivables, prepayments and trade payables are discussed under section 3.3.

Overdrafts are used for short-term working capital funding requirements in Zimbabwe. Expiration dates and terms of the overdrafts and short-term loans are set out in section 3.3.5.

For details on the solar plant held for sale, refer to section 4.8.

The table below illustrates the distribution of the consolidated cash across the jurisdictions where the Group holds its cash:

At the end of the Quarter, $5.4 million of the closing cash balance in Zimbabwe was held in ZiG, largely due to the timing of receipt of ZiG denominated gold sales shortly before Quarter end. The ZiG balance reduced after the end of the Quarter, to $1.9 million as of August 4, 2025.

Fixed term deposits

As of the end of the Quarter, the Company held fixed term deposits with Barclays Bank in Jersey totaling $18 million. These deposits are part of the Company’s cash management strategy to optimise returns on liquid assets while preserving capital. The fixed term deposits have maturity periods ranging from 3 to 9 months, with contracted interest rates between 4.07% to 4.20% per annum. Interest income on these deposits is accrued over the life of the instruments and is received on maturity. The Company expects to realise approximately $0.35 million in interest income upon maturity.

3.5 Supplementary financial information

The following information is provided for each of the eight most recent quarterly periods ending on the dates specified. The amounts are extracted from underlying financial statements that have been prepared using accounting policies consistent with IFRS.

^{* Refer to section 12 and section 13.}

4. OPERATIONS

4.1. Safety and Health

4.1.1. Blanket

Under the oversight of the Chief Operating Officer, who was appointed in May 2024, Blanket's management initiated a comprehensive review of safety procedures and safety training following which several measures have been or are being implemented.

The Total Injury Frequency Rate (“TIFR”) increased in the Quarter compared to the previous quarter, but it was lower than the average TIFR over a longer period.

4.1.2. Bilboes oxide mine

The Bilboes oxide mine has been on care and maintenance since the end of the third quarter of 2023.

4.2. Gold Production - Blanket

Below is a table showing quarterly gold production in the Quarter and the preceding seven quarters:

Gold production at Blanket for the Quarter was 1.4% higher than the comparable quarter. Gold production excludes approximately 3,200 ounces of gold estimated to be contained in the ore stockpile at the end of the Quarter.

4.3.1 Mining Operations – Blanket

The table below shows tonnes hoisted from Blanket in the Quarter and the preceding seven quarters.

Tonnes broken and hoisted in the Quarter increased compared to the comparative quarter after the introduction of revised management structures in late 2024 which increased the direct supervision of underground mining, tramming and hoisting activities. Tramming activities also improved as result of a reduction in the downtime of tramming equipment and the better synchronization of tramming crews.

The improved rate of mining and hoisting in the Quarter exceeded milling capacity, which meant that at the end of the Quarter approximately 33,037 tonnes of ore were stockpiled on surface (March 31, 2025: 15,154 tonnes) representing approximately 12 days of target mill throughput. Management intends to maximise mine production to further build the ore stockpile to create a buffer to absorb unforeseen interruptions to mining activities and to allow milling to continue uninterrupted during scheduled engineering work on winders and shafts.

4.3.2 Milling Operations - Blanket