Gold miner, Caledonia Mining Corporation, which owns and operates the Blanket mine in Gwanda has embarked on a dividend increase structure. This development comes as the company’s Blanket mine expansion project nears completion.
According to Caledonia Chief Executive Officer, Mr. Steve Curtis, Blanket mine has been operating extremely well, encouraging Caledonia to regularly increase and pay dividends every month.
“So very cash generative, very good operation and that allows us Caledonia to be a regular dividend payer to our shareholders. We have recently embarked on a dividend increase structure as we get closer and closer to the project being completed.” Curtis said.
Caledonia Mining Corp has been self-funding the growth and development of Blanket Mine with the mine production increasing to about 40 percent annually.
“We have no debt; we are a very cash generative so we are able to be the master of our own destiny. We self-funded this whole US$70 million project out of our own resources but we are listed. If we do need access to market, we have got the support of financial market.
“We have an internal growth potential of about 40 percent from were produced in 2020. We did 58 000 ounces and we are going to go up 80 000 ounces. We are a relatively low-cost producer for an underground mine,” he said.
Caledonia’s financial performance led to it paying a total dividend of $0.12 apiece in April, while a further dividend at the increased rate of $0.13 apiece was paid in July.
Caledonia is currently developing a new mine underneath Blanket Mine as it seeks to produce over 2 tonnes of gold annually.