Caledonia Mining Corporation Plc declares quarterly dividend of 1.375 cents per share


Caledonia Mining Corporation Plc COM SHS NPV (DI) (LON:CMCL) today announced that, in line with its dividend policy, the Board of Directors has declared a dividend of one and three eighths United States cents (US$0.01375) on each of the Company’s common shares.

The relevant dates relating to the increased dividend are as follows:

· Ex-dividend date for shares held on the Canadian register: 12 April 2017
· Ex-dividend date for shares held through depositary interests in CREST in the UK: 13 April 2017
· Record date: 18 April 2017
· Dividend cheque mailing date: 28 April 2017

Shareholders and depositary interest holders who are registered in Canada and the UK respectively will be paid in Canadian Dollars and Sterling, respectively. The Canadian Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates at noon on the record date.

Chief Executive Officer, Steve Curtis, said: “Notwithstanding a record level of capital investment in 2016 and the continued volatility in the gold price, Caledonia has maintained the quarterly dividend at the higher level of 1.375 cents per share, which we announced in July 2016.

“We are targeting 60,000 ounces of production from the Blanket mine during 2017 as we progress our aim towards annual production of 80,000 ounces by 2021. I am confident that, as gold production continues to increase at the Blanket Mine, as a result of our investment plan, the cost per ounce of gold produced will continue to fall, with a commensurate improvement in cash generation.

“Caledonia remains committed to distributing cash to shareholders whilst simultaneously retaining a robust balance sheet to enable us to take advantage of further opportunities.”

Caledonia Mining Corporation Plc COM SHS NPV (DI) Dividend Policy

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Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy. In 2014, the Company paid an annual aggregate dividend of six Canadian cents (CAN$0.060) per common share. The first quarterly dividend was paid on 31 January 2014 and subsequent quarterly dividends were paid thereafter.

On 16 December 2015 the company announced that, henceforth, it will report its financial results in United States Dollars, commencing with the results for the quarter and 12 months to 31 December 2015. The dividend paid at the end of January 2016 was therefore denominated in United States Dollars at 1.125 United States cents per share.

In July 2016 the company announced a 22 per cent increase in the quarterly dividend to 1.375 United States cents per share. The increase reflects the Company’s confidence that its earnings and cash generation will increase as production at the Blanket Mine increases, due to the continued implementation of the Investment Plan.

It is expected that the increased dividend of 5.5 United States cents per annum, paid in equal quarterly instalments, will be maintained. CMCL continues to maintain its strong financial position and is satisfied that it can implement its stated growth strategy without the need to raise third party finance.

Effect of the re-domicile from Canada to Jersey, Channel Islands

Following the re-domicile of the Company from Canada to Jersey with effect from 19 March 2016, the dividend is no longer subject to Canadian withholding tax and it is no longer eligible for the purposes of the Income Tax Act (Canada).

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Caledonia Mining Corporation

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