HARARE - Toronto Stock Exchange-listed Caledonia Mining Corporation (Caledonia) has declared a $0,015 dividend per share for its first quarter to December 2013.
This comes as the southern Africa-focused miner recently announced that it would be declaring dividends on a quarterly basis.
Caledonia’s primary asset is Gwanda-based gold miner, Blanket Mine, in which it holds a 49 percent stake after complying with Zimbabwe’s indigenisation policy.
Indigenous Zimbabweans, who through various schemes own 51 percent of Blanket Mine, are expected to benefit from the new dividend policy.
The National Indigenisation and Economic Empowerment Fund holds 16 percent, a consortium of indigenous Zimbabweans holds 15 percent, the Blanket Mine Employees Trust 10 percent while the remaining 10 is in the hands of the Gwanda Community Share Ownership Trust.
The new dividend policy, which is likely to be welcomed by shareholders, was approved by the company board as a long term measure to maximise stockholder benefits.
“Shareholders who are registered in the United States of America and the United Kingdom will be paid in US Dollar and Sterling respectively.
The US Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates at noon on the Record Date and will be after deduction of Canadian withholding tax and any other taxes that may apply,” said the miner.
Caledonia’s long term strategy to maximise shareholder value includes a quarterly dividend policy.
In 2014, the company intends to pay an annual aggregate dividend of six Canadian cents per common share, payable on a quarterly basis.
The Canadian-based miner is debt-free and at September 30, 2013 had gross cash of over $25 million outside Zimbabwe.
Its subsidiary — Blanket Mine — is a low-cost producer and in the quarter-ended September 30, 2013, on-mine costs were $554 per ounce of gold produced, its all-in sustaining cost was $873 per ounce of gold and its all-in cost (which includes the investment in expansion projects) was $999 per ounce.
Caledonia said investment continues at Blanket Mine with the objective of increasing production to 48 000 ounces of gold in 2014 and 52 000 ounces of gold in 2015.
“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.