TORONTO Stock Exchange- listed Caledonia Mining Corporation has approved the implementation of a new quarterly dividend policy as a long term strategy to maximise shareholder value.
Report by Business Reporter
The company said in a statement yesterday it intended to pay an annual aggregate dividend of six Canadian cents per common share, payable on a quarterly basis with the first dividend due on January 2014.
“The Caledonia board will continue to review dividends which will depend on the performance of the company and its capital investment requirements,” the statement read.
Caledonia has a 49% stake in Blanket Gold Mine in Zimbabwe.
According to the statement Blanket mine is a low-cost producer and in the quarter to September 30, 2013, on-mine costs were $554 per ounce of gold produced.
Blanket’s all-in sustaining cost was $873 per ounce of gold and its all-in cost (which includes the investment in expansion projects) was $999 per ounce.
“Investment continues at Blanket with the objective of increasing production to 48 000 ounces of gold in 2014 and 52 000 ounces of gold 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.
Blanket Mine paid a dividend of $5,6 million to indigenous Zimbabweans in the nine months ending September.
The mining firm’s total assets stood at $76,3 million while liabilities were $13,1 million down from $15,4 million in 2012.
During the nine-month period to September the mine recorded a 1,4% increase in output to 34 109 ounces from 33 642 ounces last year.
The mining sector has been the major driver of the economy since 2009 and it has overtaken agriculture.