JERSEY-BASED miner Caledonia Mining Corporation Plc has paid out significant bonuses to its five executive managers for the 2024 financial year, citing outstanding achievement of key performance indicators.
Last year, Caledonia overturned a loss of US$4,84 million experienced in the prior period to post a profit after tax of US$23,05 million.
This was due to revenue growth of about 25% to US$183,01 million during the period under review, up from the 2023 comparative.
The growth was driven by a 23% increase in the average realised gold price, rising to US$2 347 per ounce from US$1 910 per ounce in 2023, as well as key cost improvements.
In providing compensation, Caledonia’s objective is to motivate, retain, and drive the performance of its executive officers (NEOs).
In 2024, the Caledonia execuitve was led by chief executive officer, Mark Learmonth.
“The remuneration for each of the NEOs in 2024 consists of a salary and discretionary bonus, which is linked to the achievement of various key performance indicators, for example, safety, costs, production, capital expenditure, and other relevant individual performance metrics that differ by role,” Caledonia said in a management information circular.
“NEOs also participate in the plan, along with over 60 other members and retired members of staff at Caledonia and its operating companies, the first awards under which were made to certain NEOs in 2016. None of the NEOs hold share purchase options, nor did they hold share purchase options during 2024.”
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Caledonia is a Zimbabwe-focused exploration, development, and mining corporation that owns the local gold-producing Blanket Mine, Bilboes Mine, and the Motapa and Maligreen gold mining claims.
“All components of executive remuneration are recommended to the compensation committee for approval,” Caledonia said.
Learmonth saw his total compensation pegged at US$964 897.
“The performance metrics of the awards granted in 2024 are gold production (40% weighting) and resource development (20% weighting) at Blanket Mine within the current infrastructure; progress with the Bilboes sulphide project (20% weighting); and exploration (20% weighting) over the performance period,” Caledonia said.
“Any awards made in 2025 are expected to be made shortly after the publication of the company’s financial results for 2024, in accordance with the compensation committee’s decision to begin making awards after results are published rather than shortly after year-end. Vesting of all awards after 2025 is expected to occur after publication of annual financial results.”
Blanket Mine performed well, with gold production of 76 656 ounces during the period, compared to 2023’s 75 416 ounces.
As announced on March 27, 2025, Caledonia, with the support of DRA Projects (Pty) Ltd and other technical consultants, revealed it had been making good progress on the feasibility study for the Bilboes project, which has shown positive results.
The miner also announced encouraging results in November 2024 from the initial exploration programme at Motapa.
The firm revealed the various elements of the compensation of the NEOs had been chosen to make the compensation packages competitive.
“Other than the value accruing to NEOs as a result of the effect of share price movements on the value of their awards, the compensation of the company’s NEOs is not determined in relation to the prices at which its common shares have traded,” Caledonia said.
“Compensation as described above is linked to the achievement of various key performance indicators through appropriate metrics attached to both short- and long-term (PUs) incentives, as well as a market-related salary.”
The awards are paid as PUs or performance units, which are equivalent to performance shares but denominated in units.
Performance shares are denominated in common shares, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved.
Each performance share and PU will have an initial value equal to the fair market value of a common share on the date of grant.
“At its meeting in December 2024, the committee, with the assistance of Deloitte, reviewed, amongst other things, the performance of the executives and the business against key performance indicators, considered incentives for the following year and the committee’s work plan for 2025, approved fixed inflationary pay increases, reviewed and improved compensation processes and governance for 2025, and reviewed non-executive director compensation,” Caledonia said.
“The committee resolved at the meeting to apply an inflationary increase of 2,5% to executive base compensation, given the current salary levels compared to the market, and to recommend to the board that the non-executive directors receive inflationary increases to their fees going forwards that are in line with executives’ base compensation increases, and also to consider the composition of the fees.”
