The Sunday News
Judith Phiri, Business Reporter
LISTED gold mining entity, Caledonia Mining Corporation Plc has declared a quarterly dividend of US$0.14 per share as the company has reported a robust performance at Blanket Mine in 2023, with cash flows improving in the second half.
The dividend was kept the same level as the prior year even though, as revealed in a trading update at the start of this month, one-off costs took the edge off profits.
In a statement, the company said: “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. 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.”
In a trading update for the year ended December 31, 2023, the chief executive officer (CEO), Mr Mark Learmonth said they continue to record improved performance at their Gwanda-based Blanket Mine.
“The performance of Blanket remains robust, operating cash flows across the second half of the year show a continuation of the improved operating performance compared to the first half of 2023. We continue to see Blanket as the solid foundation for growth as we pursue our strategy to become a multi-asset gold producer,” he said.
“I am pleased that the company also announces today its quarterly dividend of 14 cents which reflects management’s confidence in the operations of the business. Future dividend payments will reflect operational performance and an assessment of capital allocation.”
He said at a consolidated level, group profitability for the quarter was adversely affected by several unanticipated one-off costs and by higher than-expected labour and power costs.
Mr Learmonth said management has taken steps to address the challenges and is evaluating measures to reduce electricity consumption and improve labour efficiency.
“Gold sales in the quarter exclude 3 057 ounces of gold that were held as work-in-progress as at December 31, 2023 and which were sold early in January 2024.
“We are highly encouraged by the results from the underground exploration programme at Blanket which we restarted during the year, in general, the drilling results, which we announced in July 2023 and January 2024, indicated significantly better widths and grades than previously modelled and we expect to publish a revised resource statement in the second quarter of 2024 which should incorporate an increase in Blanket’s life of mine,” he added.
He said Caledonia’s vision has evolved over the last couple of years from being a relatively small operator of a single asset towards a strategy focused on becoming a multi-asset, Zimbabwe-focused gold producer with an ambition to produce over 250 000 ounces of gold per annum.
Mr Learmonth said the acquisition of Bilboes in January 2023 builds on the earlier acquisitions of Motapa and Maligreen to create a portfolio of high-quality exploration and development assets in Zimbabwe.
“I look forward to announcing the results of the updated feasibility study for the Bilboes sulphide project soon and firmly believe that we have the potential to create and deliver greater shareholder value from the future inclusion of this project in our production profile,” he said.
