Caledonia Increases Quarterly Dividend By 9%

Caledonia Mining Corporation has announced its fifth quarterly dividend increase in the last 18 months with the latest gain taking the price of shares to US$0.12 each, company Chief Executive Officer Steve Curtis has said.

Speaking on the announcement, Curtis indicated that the development is reflective of the company’s confidence in its investment outlook in the country.

“We are pleased to announce an additional nine per cent increase in our quarterly dividend, the fifth increase in the past 18 months. This represents a cumulative 75 per cent rise in the dividend since the first increase in October 2019. The decision by the Board to increase the dividend reflects our continued confidence in the outlook for our business,” Curtis said.

He added, “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.”

Meanwhile, Caledonia has commissioned the deepest shaft of any gold mine in Zimbabwe at its Blanket Mine. The project which cost US$67 million is expected to increase gold production at the mine to 80,000 ounces per year.

“I am delighted to announce that our new Central Shaft, which is the deepest shaft of any gold mine in Zimbabwe, is fully operational. We can now start to hoist rock, men and material on a daily basis, which will solve our hoisting constraints and facilitate the planned expansion in mine capacity targeting 80,000 ounces of gold production per year,” Curtis said.

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