Caledonia Mining Corporation Plc (LON:CMCL) has today announced that the Board of Directors has declared an increased quarterly dividend of 13 United States cents (US$0.13) on each of the Company’s shares.
· Eight per cent increase from the previous quarterly dividend of 12 cents that was paid in April 2021
· 89 per cent cumulative increase from the level of 6.875 cents since October 2019
· Sixth increase in the quarterly dividend since October 2019
· Central Shaft now operating
· Target production of 61,000 to 67,000 ounces of gold in 2021 and 80,000 ounces of gold per annum from 2022
· Scheduled ramp up in production, a firm gold price and good cost control give the Board confidence that the business can sustain a higher level of dividend.
Commenting on the announcement, Steve Curtis, Caledonia Mining Corporation Chief Executive Officer, said:
“We are pleased to announce an additional eight per cent increase in our quarterly dividend, the sixth increase in the past two years. This represents a cumulative 89 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.
“With the Central Shaft now in operation, 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.”
The relevant dates relating to the dividend are as follows:
· Ex-dividend date: July 15, 2021
· Record date: July 16, 2021
· Payment date: July 30, 2021
Shareholders with a registered address in the UK will be paid in Sterling.
Caledonia’s Dividend Policy
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 company also announced quarterly gold production from the Blanket Mine in Zimbabwe for the quarter ended June 30, 2021.
· Record production of approximately 16,710 ounces of gold during the Quarter, an increase of approximately 23.8% on the 13,499 ounces produced in the corresponding quarter of 2020.
· Gold produced for the first half of 2021 was 29,907 ounces, approximately 7.8% above the 27,732 ounces produced in the first half of 2020.
· Caledonia maintains its 2021 full year production guidance of 61,000 to 67,000 ounces and remains on track to hit target of 80,000 ounces from 2022.
Commenting on the announcement, Steve Curtis, Chief Executive Officer, said:
“Having got off to a slow start to the year, for production to be 7.8% above the first half of 2020 and 23% ahead of the corresponding quarter is an outstanding achievement and leaves us well placed to meet our full year guidance.
“During the quarter we also announced that Central Shaft was operational; this has been a huge feat by the team. We are currently working hard to achieve the expansion and we remain on track to hit our 80,000 ounce target in 2022.”