BLANKET Mine general manager and director Caxton Mangezi is among the four executives which Caledonia Mining Corporation has granted long term incentives through its Omnibus Equity Incentives Plan. Caledonia is the parent company for Blanket Mine in Matabeleland South province. The Omnibus Equity Incentive Plan was approved by the company’s shareholders in May last year.
The other three executives granted the Omnibus Equity Incentive Plan are Caledonia’s president Steve Curtis, the conglomerate’s chief financial officer Mark Learmonth and vice president Dana Roets.
According to Caledonia, the Long Term Incentive Plan (LTIP) awards are made in the form of Restricted Share Units (RSUs) and Performance Share Units (PSUs), which will be settled in cash, reflecting the group’s share price at the maturity of the award.
“The awards are intended to create a high degree of alignment between the remuneration of Caledonia’s senior management team and the interests of shareholders. Accordingly, 80 percent of the award value for each participant is made up of PSUs.
“The final number of PSUs which vest on maturity of the award will be adjusted to reflect the actual performance of the company in terms of three criteria: progress on the sinking of the central shaft; gold production and production costs,” it said in a statement.
The mining conglomerate added:
“In the case of all three criteria, if actual performance is less than 70 percent of target, no PSUs will vest; if actual performance is greater than 70 percent of target, the number of vesting PSUs will be adjusted pro rata on a linear basis.
“In the case of central shaft progress, adjustment will be to a maximum of 100 percent of target whereas adjustments with respect to gold production and costs will increase on a linear pro rata basis reflecting the extent to which actual performance exceeds target, subject to a maximum of 200 percent of the initial target,” said Caledonia.
The total annual LTIP award for Learmonth, Mangezi and Roets is 20 percent of basic salary while that for Curtis is 30 percent of his basic salary.
The group’s chairman, Leigh Wilson, was quoted commenting on the introduction of the plan saying Caledonia had set an objective and transparent incentivisation system for its senior management team that closely aligned the interests of shareholders and the performance of management.
“Management is now clearly incentivised to deliver on the core aspects of the revised investment plan which we announced to the market in November 2014 — these core aspects being gold production, cost control and progress on sinking the central shaft,” said Wilson.
Meanwhile, gold output at Blanket Mine went up by 2,5 percent to 42,806 ounces in 2015 compared to the same period in the prior year. For the fourth quarter of 2015, production went up by 10,6 percent from 10,927 oz in the third quarter, to 11, 518oz compared 10,417oz produced during the same period in 2014.