Caledonia Mining declares twelfth quarterly dividend

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CALEDONIA Mining’s Zimbabwe-based Blanket gold mine continues to throw off cash
The strong performance of the Blanket gold mine in Zimbabwe, operated and 49%-owned by Caledonia Mining Corporation Limited, has allowed for a string of dividend payments to come through from the company, dating back long before the most recent strength in the gold price.
That strength, however, has played through in the most recent payments. In July, Caledonia announced that the quarterly payout would rise from one and one-eighth US cents per share to one and three-eighth cents, a 22 per cent increase.
The increase has been maintained in the most recent quarterly payout, declared at the market open on 4 October and due to be paid at the end of the month.
Meanwhile, production increases at Blanket remain on track to take output to 80,000 ounces of gold per year by 2021.
“Blanket Mine’s operating performance continues to improve with the investment programme being implemented as planned, resulting in continued robust cash generation for Caledonia Mining and Blanket’s indigenous partners,” said chief executive Steve Curtis.
“The investment that all stakeholders have made in the Blanket Mine over the past 20 months continues to bear fruit with increased operational flexibility and production volumes. I am now confident that our production guidance of 50,000 ounces in 2016 will be achieved.
“The planned increase in production up to 80,000 ounces by 2021 is expected to result in a lower average cost of production as fixed costs are spread across an increased number of gold ounces. I therefore expect that the benefits of incremental volume will become increasingly evident in the months and years to come.”Advertisement