Caledonia declares first quarterly dividend

Published: 16 January 2014

Toronto Stock Exchange listed mining company, Caledonia Mining Corporation has declared a dividend of $0,015 per share for the first quarter of its financial year.

The declaration of a dividend will benefit indigenous Zimbabweans who own 51 percent of Blanket mine, Caledonia's primary asset.

The corporation owns 49 percent of the Gwanda-based gold mine which was one of the first mines to fully comply with the Indigenisation policy.

The new quarterly dividend policy was adopted by the Caledonia board as a way of maximising shareholder value.

"Caledonia's long term strategy to maximize shareholder value includes a quarterly dividend policy.

In 2014, the Company intends to pay an annual aggregate dividend of 6 Canadian cents per common share, payable on a quarterly basis," the company said.

Caledonia had gross cash of over $25m outside Zimbabwe as at September 30 2013. Blanket mine, which is a low cost producer has also continued to perform well reporting a 3,9 percent increase in gold production in the third quater of 2013.

The company produced 12,042 ounces of gold during the quarter, up from 11,588 oz achieved in the second quarter.

Total gold production for the nine months to September 30, 2013 went up 1,4 percent to 34,103 oz from 33,643 oz in the previous year.

Caledonia said it would continue making substantial investment in Blanket mine with the aim of increasing production.

“Blanket Mine also continues to make substantial investments in its exploration and development projects as a result of which gold production may, in due course, increase above 52 000 ounces per annum,” noted Caledonia.
- bh24