Chronicle Editor
Oliver Kazunga, Senior Business Reporter
CALEDONIA Mining Corporation, which owns Blanket Mine in Gwanda, Matabeleland South province, says the advance dividend loan account due from the Gwanda Community Share Ownership Trust (GCSOT) has now been fully repaid.
In 2012, Caledonia facilitated the ownership of 51 percent of Blanket by locals in accordance with the prevailing legislation at that time.
This included a 10 percent ownership by the local community via GCSOT.
Following changes in legislation, Caledonia last year increased its shareholding in Blanket to 64 percent, but GCSOT retained its 10 percent ownership.
In a statement, Caledonia said in 2012 and 2013 Blanket made advance dividend payments to GCSOT totalling $4 million so that the trust had funds to establish its operations.
GCSOT repaid the advance dividends by sacrificing its entitlement to future dividends: initially GCSOT sacrificed 100 percent of its dividend entitlement, which was subsequently reduced to 80 percent.
“The outstanding balance of the advance dividend account at June 30, 2021 (being the most recent reporting date) was $0,2 million.
“On September 29, 2021, Blanket paid a dividend following which the advance dividend account has been completely repaid.
“Henceforth, GCSOT, one of the indigenous shareholders, will receive its full entitlement to 10 percent of Blanket’s dividends.”
Commenting on the announcement, Caledonia chief executive officer Mr Steve Curtis was quoted as saying:
“Investment in our local communities and employees is key to a successful business and I am therefore delighted that the loan to the GCSOT is now fully paid off and that the community will start to receive its full dividend amount from Blanket.”
Meanwhile, Caledonia has declared an eight percent increase in quarterly dividend of US$0,14 on each of the company’s shares in the quarter ended September 30,2021.
In the quarter ended June 30,2021, it declared a quarterly dividend of US$0,13.
The company maintains this year’s production target of between 61 000 to 67 000 ounces of gold and 80 000 ounces from next year going forward. – @okazunga
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