Caledonia to declare quarterly dividend

Published: 26 November 2013

Canada-based mining firm Caledonia Mining Corporation will now be declaring dividend on a quarterly basis, the company said yesterday. Caledonia's primary asset is Gwanda-based gold miner, Blanket Mine, in which it owns 49 percent after it complied with the indigenisation laws last year.

Indigenous Zimbabweans, who through various schemes own 51 percent of Blanket Mine, will benefit from the new dividend policy.
The National Indigenisation and Economic Empowerment Fund holds 16 percent, a consortium of indigenous Zimbabweans holds 15 percent, the Blanket Mine Employees Trust 10 percent while the remaining 10 is in the hands of the Gwanda Community Share Ownership Trust.

The new dividend policy, which is likely to be welcomed by shareholders, was approved by the company board as a long term measure to maximise stockholder benefits.

"Caledonia Mining Corporation is pleased to announce that as part of the company's long term strategy to maximise shareholder value, the board of directors has approved the implementation of a new quarterly dividend policy," the company said.

In line with the new policy, Caledonia said it would pay an annual aggregate dividend of six (6) Canadian cents per share on a quarterly basis.

"The first quarterly dividend of 1.5 Canadian cents per common share is expected to be declared in January 2014," it said, adding the dividend would be reviewed depending on performance of the company.

The company has already announced its intention to continue investing in Blanket Mine to improve output to 48 000 ounces of gold in 2014 and 52 000 ounces in 2015.

"Blanket also continues to make substantial investments in its exploration and development projects as a result of which gold production may, in due course, increase above 52 000 ounces per annum," the company said.

- New Ziana.