Caledonia ups dividend to $0.11 apiece

This marks a 10% increase on the previous quarterly dividend of $0.10 apiece.

The company has increased its dividend four times in the last 15 months.

CEO Steve Curtis says the board’s decision to increase the dividend again reflects continued and increasing confidence in the outlook for Caledonia.

“Increasing production, a high gold price and good cost control have continued to result in increased cash generation, which has given the board confidence that the business can sustain a higher level of dividend distributions before the benefits of Central shaft are realised.”

The Central shaft at the company`s 64%-owned Blanket mine, in Zimbabwe, is scheduled to be commissioned during the first quarter of this year, extending the life-of-mine to 2034, while also increasing output.

Caledonia aims to produce between 61 000 oz and 67 000 oz of gold this year, compared with the 2020 target that had been set at between 55 000 oz and 58 000 oz.

From 2022, Caledonia aims to produce 80 000 oz/y.

The company continues to explore additional prospects around the mine, including the Glen Hume and Connemara North deposits.