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Gwanda gold miner underscores financial health

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CANADA-BASED Caledonia Mining Corporation has burnished its reputation for being one of the few gold stocks on the London junior market paying a dividend – and a decent one at that.
The company’s principal operational asset is the Zimbabwe-based Blanket Gold Mine which is located in Gwanda.
“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,” management said in a statement Tuesday.
The distribution of cash comes as Caledonia continues to invest in ramping up production from the deeper lying mineral at Blanket.
Production is forecast to be in the order of 60,000 ounces of the yellow metal this year, rising to 80,000 ounces by 2021.
“The continued payment of dividends to our shareholders is a key component of our strategy as we invest in future production growth and we are particularly proud of being able to continue to pay a healthy dividend whilst we invest in expanding production,” said Caledonia chief executive Steve Curtis.
“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.”
Caledonia Corporation now holds a 49% interest in Blanket Gold Mine following the implementation of its indigenisation programme.
The parent company is listed in Canada on the Toronto Stock Exchange as well as on London’s AIM.Advertisement