Caledonia declares final dividend of US0.14

Audrey Galawu

Caledonia Mining Corporation has declared a final dividend share of US$0.14 payable on January 26, 2024.

The mining company has declared the same dividend share since January 2023.

Meanwhile, the company’s gold production at Blanket was a record for any quarter and amounted to 21 772 ounces, 3.1% higher than the 21120 ounces produced in the comparative quarter.

Revenue was 14.9% higher than the comparative quarter due to a 7.8% increase in the quantity of gold sold and a 6.6% increase in the average realised price of gold sold.

Production costs increased by 29.4% compared to the comparative quarter.

In its 2023 financial update, Caledonia Mining highlighted that the company needs access to foreign currency so that it can pay for imported goods and equipment and remit funds to Group companies outside Zimbabwe.

“At prevailing gold prices and the current rate of production, the Company has access to sufficient foreign currency to continue normal mining operations and to fully implement its investment plan as scheduled.

“No assurance can be given that sufficient foreign currency will continue to be available.

“The Company needs to identify new resources to replace ore which has been depleted by mining activities and to commence new projects.

“No assurance can be given that exploration will be successful in identifying sufficient mineral resources of an adequate grade and suitable metallurgical characteristics that are suitable for further development or production,” reads the report.

The group revealed that mining companies generally have experienced higher costs of steel, reagents, labour and electricity and from local and national government for levies, fees, royalties and other direct and indirect taxes.

Caledonia Mining also said production at Blanket has been adversely affected by the instability of the incoming electricity supply.

“Zimbabwe produces and imports less electricity than it requires and has insufficient funds to adequately maintain or upgrade its distribution infrastructure.

“This has resulted in frequent interruptions to the power supply at Blanket. Blanket has addressed the issue of interrupted power supply by installing stand-by generators and constructing a solar plant which provides approximately a quarter of Blanket’s power requirements during the day.

“After the end of the Quarter, Blanket entered into an agreement for the direct import of power through the IEUG initiative.

“The Company has installed further auto-tap changers to increase the protection against power surges and it has further increased its diesel generating capacity,” further reads the update.