Caledonia Mining declares another increased quarterly dividend

Caledonia Mining Corporation

Caledonia Mining Corporation Plc (LON:CMCL) has announced that the Board of Directors has declared an increased quarterly dividend of 12 United States cents (US$0.12) on each of the Company’s shares.

Highlights

·   Nine per cent increase from the previous quarterly dividend of 11 cents that was paid in January 2021

·   75 per cent cumulative increase from the level of 6.875 cents since October 2019

·   Fifth increase in the quarterly dividend since October 2019

·   Central Shaft brought into operation during the first quarter of 2021

·   Target production of 61,000 to 67,000 ounces of gold in 2021 and 80,000 ounces of gold per annum from 2022[1]

·   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, Chief Executive Officer, said:

“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. 

“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.”

The relevant dates relating to the dividend are as follows:

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·    Ex-dividend date: April 15, 2021

·    Record date: April 16, 2021

·    Payment date: April 30, 2021

Shareholders with a registered address in the UK will be paid in Sterling.

Caledonia’s Dividend Policy

Caledonia Mining’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 today that its Central Shaft is now fully operational.

Commenting on the announcement, Steve Curtis, Chief Executive Officer, said:

“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 oz of gold production per year.

“Commissioning the Central Shaft has been the culmination of a six-year project costing approximately $67million, all funded through internal cash flow.

“This has been an owner-funded and built project by the Blanket team and I would like to thank everyone for their hard work and especially for achieving the completion of the shaft without any serious accidents, recording only two lost time injuries.” 

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