CALEDONIA Mining Corporation, the Zimbabwe gold producer, increased the quarterly dividend by one US cent per share to 12 cents/share – an 8% lift and the sixth upwards adjustment since October 2019.
Steve Curtis, CEO of Caledonia, said the near completion of the firm’s Central Shaft project at its Blanket mine meant that capital expenditure was declining whilst production was due to increase to 80,000 ounces a year from 2022.
The company also announced today record second quarter production of 16,710 oz, an increase of approximately 23.8% compared to the corresponding quarter of 2020, and putting it on course to meet full year output guidance of 62,000 to 67,000 oz.
Curtis said the company also had confidence it would generate sufficient cash to support its exploration prospects Glen Hume and Connemara North.
In December, Caledonia said had bought a $2.5m option over Glen Hulme which is situated in Zimbabwe’s Gweru mining district.
If the exploration of the property is successful, the company will pay a further $2.5m in cash which will give it mining rights over Glen Hulme. Caledonia said the region had historically produced “significant quantities of gold”.
“This agreement represents the first step towards our goal of increasing our portfolio and becoming a multi-asset gold producer in Zimbabwe, one of the last gold frontiers in Africa,” said Curtis at the time.
