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Business Reporter —
Toronto Exchange Listed Caledonia Mining Corporation is targeting to increase its annual production to 60 000 ounces at its 49 percent owned Blanket Mine this year.
The production target is part of the mining firm’s goal to achieve an annual production of 80 000 ounces by 2021.
“We look forward to an equally significant 2017 as we target 60 000 ounces of production from the Blanket mine as part of our progress towards annual production of 80 000 ounces by 2021.
“Caledonia remains committed to distributing cash to shareholders whilst simultaneously retaining a robust balance sheet to enable us to take advantage of further investment opportunities,” 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,” he said.
Mr Curtis said 2016 has been a significant year for Caledonia with the investment in production capacity below 750 meters at the Blanket mine beginning to bear fruit.
“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.”
He said Caledonia’s dividend policy strategy to maximise shareholder value includes a quarterly dividend policy.
The company yesterday declared a quarterly dividend of 1,375 cents per share ($0,01375) on each of the Company’s common shares.
In 2014, the mining company paid an annual aggregate dividend of six Canadian cents per common share.
Following the implementation of indigenisation in Zimbabwe, Caledonia’s primary asset is a 49 percent interest in an operating gold mine in Zimbabwe.
Caledonia’s shares are listed in Canada on the Toronto Stock Exchange and are also traded on the American OTCQX. At September 30, 2016, Caledonia had net cash of $12,4 million.
Caledonia’s strategic focus continues to be the implementation of the Revised Investment Plan at Blanket, which was announced in November 2014 and is expected to extend the life of mine by providing access to deeper levels for production and further exploration.
Caledonia believes the successful implementation of the Revised Investment Plan is in the best interests of all stakeholders because it is expected to result in increased production, reduced operating costs and greater flexibility to undertake further exploration and development, thereby safeguarding and enhancing Blanket’s long term future.
The mining company’s cash position is expected to improve as a result of the implementation of this Revised Investment.
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