Caledonia on track to reaching production target

07 Jul, 2022 - 00:07 0 Views
Caledonia on track to reaching production target Blanket Mine

The Chronicle

Business Reporter
CALEDINIA Mining Corporation”s board of directors have declared a quarterly dividend of US$0,14 on each of its shares.

The company, which aims to become a multi-asset gold producer, also said it is on track to reaching a target production of between 73 000 and 80 000 ounces of gold this year.

CALEDINIA Mining Corporation

It added that it continues to evaluate investment opportunities in Zimbabwe and elsewhere.

“Although the dividend continues to be a central part of our strategy, I am very excited with the opportunity that we have to evolve our business in Zimbabwe and de-risk it from being a single asset producer,” Mr Mark Learmonth, a senior company officer, commented.

Caledonia will update the market of its progress in due course, it said.

This comes after the company’s Blanket Mine in Gwanda, Matabeleland South, saw gold production rise 40 percent to 18 515 ounces for the quarter ended March 31, 2022 from 13 197 ounces in the prior period last year.

“I am delighted that during this quarter we have set a new first-quarter production record. 18 515 ounces is ahead of our expectations and reflects the increased capacity at Central Shaft,” chief executive officer Steve Curtis said in April.

Caledonia CEO, Mr Steve Curtis

The miner invested approximately US$67 million in its Central Shaft at Blanket Mine, which was commissioned in March 2021.

Completion of the Central Shaft is also expected to give Caledonia the financial capacity to evaluate and implement new growth projects.

“The ramp-up in production towards our quarterly target of 20 000 ounces means that we are on track to meet our annual production target,” Mr Curtis said.

Gold production at Caledonia Mining Corporation had an annual average growth rate in output of four percent since 2017.

While the firm has decided not to exercise the option to the Glen Hume Mine, analysts say open cast mines Connemara North and Maligreen Goldfields remain on the cards with annual historic output of 20 000 ounces each.

Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy, which the board adopted in 2014.

The board will consider future increases in the dividend as appropriate in line with its prudent approach to risk management.

The dividend will be paid to shareholders on July 29.

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