Caledonia Mining Corporation has recorded a gross profit of $10,6 million for the financial year ending 31 March, representing a 146 percent increase from the $4.3 million recorded in the previous year.
Gross revenues of $23.6 million, a 48 per cent increase on the $15.9 million achieved in the first quarter of 2019.
The positive figures have enabled the company to pay a dividend of 7.5 cents per share which is a 9.1 percent increase on the previous dividend paid in October 2019.
Speaking on the financial results announcement Caledonia Mining Corporation Chief Executive Officer, Steve Curtis owed the strong financial operation to a 20 percent increase in gold production at the company’s Blanket Mine.
“I am delighted by Blanket Mine’s continued strong financial and operating performance in the first quarter of 2020. The management initiatives which were implemented in 2019 have resulted in an almost 20 percent increase in gold production in the first quarter of 2020 compared to the first quarter of 2019.
“Increased production, combined with lower on-mine costs per ounce and an improved gold price, have resulted in a substantial increase in profit,” he said.
While gross profit for the quarter more than doubled, the excellent performance was also reflected in strong cash generation in which net cash flow from operating activities, before interest, tax payments and capital expenditure, was $10.9 million compared to $6.6 million in the first quarter of 2019.
Caledonia ended the quarter with net cash and cash equivalents of $13.8 million – an increase of $4.9 million over the course of the Quarter.
Curtis also added that the increased dividend equates to an annual dividend of 30 cents per annum which compares to net cash from operating activities in 2019
“In light of the improved performance and the brighter outlook for 2020, Caledonia increased its quarterly dividend from 6.875 cents per share to 7.5 cents per share in January 2020. The increased dividend equates to an annual dividend of 30 cents per annum which compares to net cash from operating activities in 2019 of 169 cents per share. At the end of April, in light of Blanket’s strong performance and the return to normal levels of production including renewed access to supply chains, the board declared a quarterly dividend at the increased level of 7.5 cents per share which will be paid at the end of May.
“The board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe and in line with a prudent approach to financial management,” he added.
In the same quarter, Caledonia also completed the purchase of an additional 15 per cent shareholding in Blanket Mine increasing the company’s shareholding to 64 per cent.