Multi-listed, gold-focused miner Caledonia Mining Corporation Plc has announced that its board of directors has approved a quarterly dividend of 14 United States cents (US$0.14) per share, continuing the trend of consistent payouts to its shareholders, Mining Zimbabwe can report.
By Rudairo Mapuranga
Caledonia has opted to maintain its dividend at the same level for now, but the board will continue to evaluate future dividends based on the company’s financial performance and investment opportunities.
The decision comes amidst a backdrop of soaring gold prices that have significantly boosted the value of the yellow metal.
According to recent reports, the price of gold has been steadily climbing since the beginning of the year, reaching all-time highs in March 2025 due to several factors, including geopolitical tensions, inflation fears, and changes in monetary policy. The Federal Open Market Committee (FOMC) meeting results, which confirmed a cautious stance on interest rates, further fueled the gold market rally.
Since October 2021, Caledonia has maintained a stable quarterly dividend of US$0.14, signalling confidence in its long-term strategy despite fluctuations in the gold market. The company’s current dividend policy, in place since 2014, reflects its commitment to maximizing shareholder value while balancing capital investment needs and prudent risk management.
Key Dividend Dates:
- Ex-dividend date VFEX: April 2, 2025
- Ex-dividend date AIM: April 3, 2025
- Ex-dividend date NYSE American: April 4, 2025
- Record date: April 4, 2025
- Payment date: April 18, 2025
Shareholders with a registered address in the UK will be paid in sterling, with conversion rates applied at the payment date.
The unprecedented rise in gold prices might suggest room for a higher dividend payout in the future. The rally in gold has been driven by a mix of economic uncertainties and investor flight to safe-haven assets. According to experts, gold’s value has surged due to inflationary pressures, the weakening of the US dollar, and market speculation regarding future interest rate hikes. This has placed miners like Caledonia in a favourable position, with increased revenue from higher gold prices potentially translating into increased shareholder returns.
Caledonia’s history of gradually increasing dividends—particularly during periods of favourable market conditions—has set a precedent for future reviews. In recent years, the company has adjusted its dividends based on operational success and financial performance, with significant increases recorded between 2020 and 2021 as gold prices strengthened.
However, Caledonia’s conservative approach to capital allocation ensures that the company’s long-term growth strategy, including its focus on expanding production and de-risking from being a single-asset producer, remains a priority. The board’s future dividend considerations will likely depend on continued favourable market conditions, investment opportunities, and the company’s operational performance.
For now, investors can enjoy the stability of the US$0.14 dividend, with the potential for increases in the future as gold prices continue to climb.
