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Caledonia increase quarterly dividend

07 Apr, 2021 - 00:04 0 Views
Caledonia increase quarterly dividend The new central shaft at Blanket Mine in Gwanda

The Chronicle

Oliver Kazunga, Senior Business Reporter
GOLD producer, Caledonia Mining Corporation, has resolved to increase its quarterly dividend to shareholders again riding on improved performance and confidence in the business outlook.

Last year, Caledonia’s total annual haul hit close to 58 000 ounces of gold, coming at a time when the Government is pushing for mining production ramp-up that is poised to see the country’s total mineral export earnings averaging US$12 billion a year from 2023 onwards up from US$2,7 billion in 2017.

The mining concern, which owns Blanket Mine in Matabeleland South province, has increased its quarterly dividend to US$0,12 from US$0,11 previously.

“The company is pleased to announce that the board of directors has declared an increased quarterly dividend of US$0,12 on each of the company’s shares,” it said.

The upgraded dividend would be paid on 31 April 2021, group chief executive officer, Mr Steve Curtis, said, adding that the quarterly dividend increase was the fifth in the past 18 months.

“This represents a cumulative 75 percent rise in the dividend since the first increase in October 2019,” he said.

Mr Curtis said the decision by the board to increase the dividend reflects Caledonia’s continued confidence in the outlook of its business.

“As we reach the end of the six-year investment programme at Blanket Mine, the anticipated combination of rising production and declining capital investment gives us confidence to further increase the dividend payment in addition to providing funding for investment in new projects, including the exploration prospects at Glen Hume and Connemara North, as announced at the end of 2020,” he said.

The New York Stock Exchange-listed mining group recently announced that it had obtained exclusive rights to explore new gold mining claims in the Connemara North area near Gweru in the Midlands province.

Connemara North is in close proximity to the Glen Hume property, which is also under Caledonia focus consideration.

The option gives Caledonia the right to explore the area for a period of up to 18 months. The firm hopes to derive favourable outcomes from this effort, which will impact positively on its overall business. Increased capacity at already existing mining houses, as is the case with Blanket Mine, is one of the key anchors expected to drive the mining sector turnaround.

The company’s 2020 strong performance comes on the back of the miner having managed 55 182 ounces in 2019.

In October last year, Caledonia signed a memorandum of understanding (MoU) with the Government, which is aimed at boosting the miner’s investment portfolio and gold production.

In the MoU, the mining concern declared and affirmed its intention to increase gold production in excess of 500 000 ounces, around 15,5 tonnes by 2030.

Further, the Government and Caledonia have acknowledged and agreed that where the firm has a specific interest in identified assets or projects towards the achievement of the target, there shall be a need to enter into specific agreements governing such assets. — @okazunga.

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