Oliver Kazunga, Senior Business Reporter
CALEDONIA Mining Corporation, which owns Blanket Mine in Gwanda, says its 2020 production guidance of between 53 000 and 56 000 ounces of gold is still achievable despite the negative impact of Covid-19.
The mining group has declared a further increase in quarterly dividend of US$0,085 on each of the company’s common shares reflecting a 13 percent increase from the previous quarterly dividend of 7,5 cents, it said in a latest statement.
Positive outlook is based on a stable production, high gold price and good cost control, which have resulted in increased cash generation in 2020. This has given the board confidence that the business can sustain a higher level of dividend distributions.
The group has said that central shaft equipping is on track to be completed in Q4 2020 while target production of 80,000 ounces of gold per annum is certain from 2022.
Commenting on the announcement, Steve Curtis, chief executive officer, said:
“As we reported in our Q1 2020 results, our financial performance has been strong due to increased production and a higher gold price,which has continued into Q2 2020.
“As we approach the end of the five-year investment programme at Blanket Mine, we anticipate the rate of capital expenditure will begin to reduce towards the end of 2020, which gives us greater flexibility to consider deploying some of our cash reserves on an increased dividend.”