Blanket Mine defers payment of dividends to shareholders

Dumisani Nsingo, Senior Reporter
CALEDONIA Mining Corporation says it has been forced to defer payment of its second quarterly dividends amounting to about US$900 000 scheduled for this month because of uncertain business environment as a result of the outbreak of the coronavirus (Covid-19).

In a statement, Caledonia Mining Corporation, which owns Blanket Mine in Gwanda said the board of directors decided to defer the approval of the declaration of the second quarterly dividend due to challenges associated with Covid-19.

“Caledonia Mining Corporation announces that due to the uncertain business environment associated with Covid-19 pandemic, the board of directors has decided to defer its approval of the declaration of the second quarterly dividend of 2020. The board will keep this decision under constant review as it monitors prevailing market conditions,” read part of the statement.

Caledonia has paid a quarterly dividend since 2014 and the payments are an important element of the company’s strategy to create and enhance shareholder value. The company said it has a health balance sheet to pay out the dividends to its shareholders.

“Caledonia’s cash position on March 26 was US$12,5 million. At the current quarterly dividend rate of 7,5 cents per share, the dividend payment that was scheduled for payment in April amounts to approximately US$860 000, less than seven percent of Caledonia’s currently available cash,” read the statement.

The company further stated that it would continue with production at its Blanket mine albeit at a lower scale as part of its efforts to reduce the risk of infections being spread within its workforce and beyond.

“Production at Blanket continues, although at a lower rate than targeted due to the introduction of measures to reduce the risk of infections being transmitted among it’s employees. Blanket also has consumables and spare parts in its inventory to sustain uninterrupted gold production well past the end of the current lockdown in Zimbabwe and South Africa,” read the statement.
@DNsingo