The Sunday News
Judith Phiri, Business Reporter
VICTORIA Falls Stock Exchange (VFEX) listed resources group, Caledonia Mining Corporation’s Zimbabwe based gold miner, Blanket Mine, has paid Gwanda Community Share Ownership Trust (GCSOT) dividend payment of US$360 000.
In 2012, Caledonia Mining facilitated the ownership of 51 percent of Blanket by indigenous Zimbabweans in accordance with the prevailing legislation at that time. This included a 10 percent ownership by the local community via GCSOT.
In 2020, following changes in legislation, Caledonia increased its shareholding in Blanket to 64 percent, but GCSOT retained its 10 percent ownership.
Victoria Falls Stock Exchange
According to Blanket Mine, in 2012 and 2013 the company made advance dividend payments to GCSOT totaling US$4 million so that GCSOT had funds to establish its operations.
“GCSOT repaid the advance dividends by sacrificing its entitlement to future dividends: initially GCSOT sacrificed 100 percent of its dividend entitlement, which was subsequently reduced to 80 percent. The outstanding balance of the advance dividend account at June 30, 2021 (being the most recent reporting date) was US$0,2 million,” said Blanket Mine in a statement on Friday.
It is said on September 29, 2021, Blanket paid a dividend following which the advance dividend account has been completely repaid.
“Henceforth, GCSOT, one of the indigenous shareholders, will receive its full entitlement to 10 percent of Blanket’s dividends.”
Mr Mark Learmonth
Commenting on the announcement, Caledonia Mining chief executive officer Mr Mark Learmonth said:
“In October 2021, Blanket Mine announced that the advance dividend loan had been repaid and going forward GCSOT would receive its full entitlement of 10 percent of dividends paid by Blanket Mine. With investment in our local communities and employees being at the heart of our business, I am delighted that this dividend has now been paid.”
Meanwhile, the Gwanda-based Blanket Mine achieved a record quarterly production of 20 091 ounces, for the three months to June 2022.
This represented a 20 percent increase ahead of the 16 710 ounces recorded in the same period in 2021.
According to the group, gold production for the first half of 2022 was 38 606 ounces, which was approximately 29 percent above the 29 907 ounces produced in the first half of 2021.
This comes as the group is maintaining its gold production forecasts for the year of between 73 000 ounces and 80 000 ounces.
“Production in the first half of 2022 was excellent and exceeded our expectations. Production excludes an estimate of approximately 1 500 ounces of recoverable gold included in an ore stockpile which will be processed after the commissioning of additional milling capacity in the next few weeks.
“We have now achieved our quarterly target of 20 000 ounces and are on track to hit our annual production target of between 73 000 – 80 000 ounces of gold,” said chief operating officer (COO) Mr Dana Roets in a statement.
money
Blanket Mine has maintained a growth trajectory since the commissioning of the Central Shaft last year.
The company has also indicated it will now focus on other areas of its growth strategy while evaluating investment opportunities, with a vision of becoming a multi asset gold producer.
One of the strategies is maintaining a strong dividend policy to maximise shareholder value includes a quarterly dividend policy which the board adopted in 2014.
According to the group, the board will consider future increases in the dividend as appropriate in line with its prudent approach to risk management.
During the quarter, the resources group announced a US14 cents quarterly dividend per share.
