Caledonia pays dividend on back of Blanket Mine ju...

Caledonia pays dividend on back of Blanket Mine jump in output

Blanket Gold Mine - Caledonia Mining Corporation plc — **Caledonia has a workforce of about 2000 in Zimbabwe**

Audrey Galawu

Assistant Editor

Victoria Falls Stock Exchanged has affirmed its focus of creating confidence by showing its profitability in the Zimbabwean market with dividend declaration.

“Caledonia's strategy to maximise shareholder value includes a quarterly dividend policy which the Board adopted in 2014, said the company in a statement announcing a 14 cent dividend.

The multi listed entity set July 10 as the ex- dividend date for VFEX.

This comes as Caledonia recently announced that its Blanket Mine gold production rose by 13 percent 37,823 ounces in the first half of 2024 compared to the same period in 2023.

Production projection for the year is set at between 74 000 and 78 000 ounces continuing a positive trajectory that has characterised the mine’s performance over the past two years.

https://zimbabwenow.co.zw/articles/7472/blanket-mine-sets-gold-production-record

Caledonia CEO Mark Learmonth has previously stated that Zimbabwe which is Caledonia’s most fertile equity market, as it has raised more money here than anywhere else in the world including New York and London- is dividend focused.

“You have to cut your cloth according to the recipient that you are talking to. The Zimbabweans love the dividend and paying the dividend sends a powerful message to investors. It is also a very powerful message to the Zimbabwean government, and it is something that is front of mind right now,” said Learmonth during the Junior Indaba in Johannesburg in May.

He said Zimbabwe has a great human capital base with deep pool of the requisite skilled workers.

Caledonia set up a dedicated 12MW solar plant to avoid downtime due to power outages which have affected the mining industry. The company sold off the plant to a power producer to concentrate on its core activity.

Learmonth also said that realignment of policies in Zimbabwe now encourage more investment due to the ease of being able to sell 75% of gold offshore, particularly through Dubai, in the United Arab Emirates, and receive payment in US dollars.

Gold miners are required to sell the other 25% locally and get payment in the local currency.

Learmonth has said paying dividends sends a powerful message to investors and guides the business when making capital allocation and investment decisions.

Caledonia acquired another gold asset, Bilboes in January 2023 and is looking at various funding options to exploit the resource.