Caledonia Mining shares plunged 17% due to critical report questioning reserve disclosures and regulatory inquiry

Caledonia Mining shares plunged nearly 17% in pre-market trading on Jan. 16, 2026, marking one of the largest single-day declines in the company’s history. The sharp drop came amid heightened market scrutiny following a critical report questioning its reserve disclosures and operational transparency.

Analysts noted the selloff reflected investor concerns over the firm’s recent failure to meet production guidance and unresolved governance issues. A regulatory inquiry into its 2025 financial statements has also fueled uncertainty, with short sellers amplifying pressure through aggressive position building ahead of quarterly earnings release.

While the company has historically benefited from rising gold prices, current technical indicators show oversold conditions and deteriorating momentum metrics. Market participants are now closely watching management’s response to the ongoing audit review and its ability to restore credibility with institutional investors.

Investor sentiment remains fragile as the market awaits any signs of operational clarity and regulatory resolution. Meanwhile, the stock is being monitored for potential technical rebounds, with some traders setting conditional buy orders near key support levels identified in recent charting analysis.