adminCaledonia Mining Corporation has said it was capable of financing its growth strategy at its primary asset, Blanket gold mine, without seeking external loans. Blanket mine, located in Matabeleland South Province, is currently undergoing a $70 million recapitalisation programme under a revised investment plan which is expected to see production increase to approximately 80 000 ounces of gold per year by 2021.
In a statement, the company said it was debt free and held $23,7 million cash as at June 30, 2015, and had put emphasis on maintaining low operating costs to further bolster its financial position. “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,” the company said.
In light of the strong financial position, Caledonia declared a dividend of $0,015 (Canadian cents) on each of the company’s common shares held at 5pm, Toronto time on October 16. “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 (October 16) and will be after deduction of Canadian withholding tax and any other taxes that may apply.”
Caledonia added: “It is currently envisaged that the existing dividend policy of 6 cents per annum, paid in equal quarterly instalments will be maintained.” Production at Blanket mine for 2015 is expected at around 42 000 ounces, up from 41 836 ounce produced last year. Next year production is projected to grow to around 50 000 ounces. — New Ziana.
Online Reporter