Caledonia on path to hit 80k ounces target, declares lucrative dividend 

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By Alois Vinga

CALEDONIA Mining Corporation says it is on the path to ramp up its productivity output to 80 000 ounces this year amid recent declaration of a lucrative quarterly dividend payout.

In an update this week, the top gold miner announced payment of a dividend in line with the commitment to maximize shareholder value.

“Caledonia is pleased to announce that the Board of Directors has declared a quarterly dividend of US$0.14 on each of the Company’s shares.

“Our 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 said.

Commenting on the announcement, Caledonia chief executive officer (CEO), Mark Learmonth said production has been very strong so far.

“Gold production so far this year has been strong, and we are on track to hit the top end of our guidance range of 73,000 to 80,000 ounces.

“Although the dividend continues to be a central part of our strategy, I am very excited with the opportunity that we have to evolve our business in Zimbabwe and de-risk it from being a single asset producer.

“I look forward to updating the market of our progress in due course,” he said.

Despite some of  the economic headwinds arising in the Zimbabwean environment on the back of imported inflation from Ukraine/Russia disturbances, Caledonia has indicated interest to deepen its investments locally.

Another top miner, South Africa’s Impala Platinum Holdings (Implats) recently described Zimbabwe as the best investment jurisdiction due to its predictable and supportive operating environment, which has allowed its investments to thrive without disruption.

The group has also tabled plans to continue to expand its operations locally.