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Enacy Mapakame
Victoria Falls Stock Exchange (VFEX) listed firm, Caledonia Mining Corporation Plc, has maintained its dividend policy declaring a US14 cents dividend a share to its shareholders for the fourth quarter to December 31, 2023.
In a statement, the company said the mining house strategy to maximise shareholder value includes a quarterly dividend policy, which the board adopted in 2014.
“Caledonia Mining Corporation Plc is pleased to announce that the board of directors has declared a quarterly dividend of 14 United States cents (US$0,14) on each of the company’s shares,” reads the statement.
“Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy which the Board adopted in 2014. The Board will consider future dividends as appropriate and in line with its prudent approach to risk management.”
Parent company for Gwanda based gold producer Blanket Mine, Caledonia is one of the leading gold producers in the country.
Apart from capital investments, Caledonia’s consistent dividend policy is one of the factors anticipated to maintain its attractiveness to investors, according to market watchers.
The listed resources group set a 2023 production target of between 87 500 ounces to 97 000 ounces. Of this group consolidated target, its recently acquired Bilboes oxides should contribute between 12 500 ounces and 17 000 ounces while Blanket’s target is set to range from 75 000 ounces to 80 000 ounces.
Meanwhile, for the third quarter to September 30, 2023, Blanket’s gold production improved 3 percent to 21,772 ounces, setting a new quarterly production record.
Gold produced at Blanket in the nine months was 55,244 ounces and the group maintains its gold production guidance for 2023 of between 75,000 and 80,000 ounces at the Gwanda based mine.
According to the resources group, the quarter was however affected by the negative contribution from the Bilboes oxide mine prior to being placed on care and maintenance from 1 October 2023.
This, according to the group will reduce monthly costs from approximately US$1 million to approximately US$200,000 at Bilboes.
Mining and metallurgical processing continued at the Bilboes oxide mine until the end of September after which the operation returned to care and maintenance.
After taking account of revenues arising from the sale of gold that will be extracted from the heap leach, Bilboes is expected to operate on a break-even basis for the remainder of the year.
A total 1,151 ounces of gold were produced from the Bilboes oxide mine in the quarter, showing an increase from the 1,076 ounces produced in the second quarter of 2023.
Leaching of material that has already been deposited on the leach pad will continue for the remainder of 2023 while oxide mining will resume when the stripping of the waste for the sulphide project commences.
Online Reporter