admin
Business Reporter
Southern Africa focused mining, exploration and development company Caledonia Mining Corporation has announced its seventh dividend that will see shareholders receiving one and half Canadian cents ($0.015) on each of the Company’s common shares issued.The company, whose primary asset is a 49 percent interest in the Blanket Mine,said that the ex-dividend date will be January 15, 2015 while cheques will be mailed on January 30, 2015.
It added that its long term strategy was to maximise shareholder value includes a quarterly dividend policy.
“It is currently envisaged that the existing dividend policy of 6 cents per annum, paid in equal quarterly installments will be maintained.
“Caledonia will continue to maintain its strong financial position so that it can implement its stated growth strategy without the need to raise third party finance,” it said.
The Company paid an annual aggregate dividend of six Canadian cents ($0.060) per common share.
The first quarterly dividend was paid on January 31, 2014 and subsequent quarterly dividends were paid at the end of April, July and October 2014.
The development comes at a time the mining company is planning to invest approximately $70 million at Blanket mine for the period 2015-2020 with all the CAPEX being funded from Blanket’s internal cash flows and existing facilities.
The funding will go towards expansion and infrastructural improvements that will allow an efficient and sustainable production build up for the mine.
Caledonia is also targeting production of approximately 75 000 ounces of gold per annum by 2021 from inferred resources and additional production of 6 000 ounces of gold in 2021 from proven and probable mineral reserves. The increased investment pursuant to the Revised Plan is expected to give rise to production from inferred resources.
Caledonia said the revised plan is expected to improve Blanket’s long term operational efficiency, flexibility and sustainability.
A preliminary economic assessment has been prepared in respect of the inferred resources which is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as mineral reserves. Blanket gold mine re-started production in April 2009 after a temporary shut-down due to the economic difficulties in Zimbabwe.
In late 2010, Blanket successfully completed an expansion project which increased production capacity from 24,000 ounces of gold per annum to 40,000 ounces of gold per annum.
Online Reporter