VICTORIA Falls Stock Exchange-listed gold producer, Caledonia Mining Corporation, believes investing in Zimbabwe is profitable as the country’s business environment presents huge opportunity for its operations to evolve into a multi-asset gold producer and de-risk itself from being a single asset producer.
The giant mining concern says it will focus on becoming a multi-asset gold producer and continue to evaluate investment opportunities in the country, a development seen as a major boost to the country’s investment climate and policies.
In a latest trading update announcing a quarterly dividend of US$0,14 on each of its shares, chief executive officer, Mr Mark Learmonth, said the company’s strategy is focused on becoming a multi-asset gold producer.
Gold production so far this year has been strong, and we are on track to hit the top end of our guidance range of 73,000 to 80,000 ounces.
“Although the dividend continues to be a central part of our strategy, I am very excited with the opportunity that we have to evolve our business in Zimbabwe and de-risk it from being a single asset producer,” he said.
The dividend will be paid to shareholders on July 29.
Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy, which the board adopted in 2014.
The board will consider future increases in the dividend as appropriate in line with its prudent approach to risk management.
The listing on the VFEX is seen as a bold indicator of growing investor confidence in the country in response to comprehensive reforms being implemented by the Second Republic.
In June, Caledonia, which operates Blanket Mine in Gwanda said the United States-dollar denominated bourse has ushered in a new era of growth for its operations in Zimbabwe.
About US$8 million has been raised from VFEX.
The foreign currency-denominated stock market has a positive bearing on the country’s journey towards the establishment of an offshore financial service centre.
All global companies invested in Zimbabwe can seek a listing on the VFEX.
The mining company said it has spent US$14 million on the solar project, which will drastically reduce its power costs.
The 12MW solar plant is expected to provide 27 percent of the mine’s electricity requirements. In 2020, Caledonia announced that the solar project was part of efforts to address electricity constraints that have over the years affected the mining industry.
The project is in line with the Government’s strategy to boost power production. The mining sector is critical in generating foreign currency, contributing about 70 percent of the forex earnings, largely driven by gold, platinum and diamond.