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Oliver Kazunga, Senior Business Reporter
CALEDONIA Mining Corporation Plc, which owns Blanket Gold Mine in Gwanda, has begun the process of listing on the Victoria Falls Stock Exchange (VFEX).

The bourse, which is a subsidiary of the Zimbabwe Stock Exchange (ZSE) was established last year in October as an off-shore biased financial services centre.

Its setting up would go a long way in buttressing the Victoria Falls Special Economic Zone.

In a statement, Caledonia said listing on the VFEX, which is for foreign as well as domestic investors in Zimbabwe with all transactions denominated in US dollars, would be conditional upon market conditions.

“Caledonia announces it is commencing the process of pursuing a listing of depositary receipts representing the company’s shares on the VFEX in Zimbabwe,” it said.

“Such a listing would be conditional upon market conditions and the implementation of positive proposals made by the Zimbabwe authorities in respect of improved payments in US dollars for gold produced at the company’s majority owned Blanket Mine.”

The mining group said the proposed VFEX listing demonstrates Caledonia’s continued commitment to Zimbabwe and would allow Caledonia and Blanket’s employees in the country to participate more easily as shareholders.

“Securing the VFEX listing is expected to take place during the course of 2021 and would be effected by a placing in Zimbabwe of depositary receipts to raise approximately US$3 million (to satisfy the requirements for local shareholder spread) and a subsequent introduction,” said the company.

“The proceeds of the placing would be used for general corporate purposes. The VFEX listing will be conditional on general market appetite and confirmation that the necessary mechanisms have been implemented so that Caledonia can realise the benefits arising from the VFEX listing including in respect of improved payments in US dollars for gold produced at the company’s majority owned Blanket Mine,” it said.

Caledonia has engaged IH Advisory, a Harare-based financial services group, to advise and assist on the proposed listing. Commenting on the planned listing, Caledonia chief executive officer Mr Steve Curtis said: “I welcome the step towards a more liberal financial environment, which is embodied in the proposed benefits attaching to a listing on the VFEX.”

Meanwhile, in the second quarter ended June 30, 2021, Blanket Mine, achieved a record gold production of 16 710 ounces, which was 23 percent above the same quarter last year. For the first half of the financial year 2021, gold production jumped 7,8 percent to 29 907oz compared to 27 732oz produced in the first half of the prior year.

Management is upbeat the resources group will maintain this growth trajectory and its full year production guidance of 61 000 to 67 000oz as well as remains on track to hit the target of 80 000oz from 2022.

Caledonia declared a quarterly dividend of US13 cents a share, which is eight percent above the US12 cents paid during the first quarter of the year.

The increase, which is the sixth in quarterly dividends since 2019 and represents a cumulative 89 percent rise in the dividend since the first increase in October 2019. — @okazunga