Caledonia Mining Corporation Plc (LON:CMCL) today announces that its board of directors has declared a dividend of six and seven eighths United States cents (US$0.06875) on each of the Company’s common shares. This amount represents the revised quarterly dividend policy following the overall one for five consolidation of the Company’s common shares on June 26, 2017.
The relevant dates relating to the dividend are as follows:
· Ex-dividend date for shares held on the share register: October 11, 2017
· Ex-dividend date for shares held through depositary interests in CREST in the UK: October 12, 2017
· Record date: October 13, 2017
· Dividend cheque mailing date: October 27, 2017
Shareholders and depositary interest holders in Canada and the UK will be paid in Canadian Dollars and Sterling respectively. The Canadian Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates on the record date.
Chief Executive Officer, Steve Curtis, said: “Caledonia maintains its quarterly dividend at 6.875 cents per share, reflecting a continuing strong balance sheet and cash position despite the ongoing investment in the Central Shaft project (the Investment Plan).
“Production remains on track for 52,000 to 57,000 ounces of gold from the Blanket Mine during 2017 as we progress towards our goal of 80,000 ounces per year by 2021 as a result of the Investment Plan.
“Caledonia intends to continue to distribute cash to shareholders whilst simultaneously retaining a robust balance sheet as we enter the final stages of the Central Shaft project and we look forward to updating the market on our recent performance with our third quarter results, which are expected to be released on or about November 15, 2017.”
Caledonia Mining Corporation Plc COM SHS NPV (DI) Dividend Policy
Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy which the board of directors adopted in 2014.
On July 3, 2017 the board approved a revised quarterly dividend policy by increasing the amount of the quarterly dividend fivefold from 1.375 United Shares cents per share to 6.875 United Shares cents per share to reflect the one for five share consolidation that was completed at the end of June 2017. The net overall effect has been to maintain the aggregate amount of the quarterly dividend.
Since 2013, Caledonia has paid dividends to shareholders totaling the equivalent of approximately US$1.58 per share (on a post share consolidation basis).
It is expected that the dividend of twenty-seven and a half United States cents per annum, paid in equal quarterly instalments, will be maintained. Caledonia continues to maintain its strong financial position and is satisfied that it can implement its stated growth strategy without the need to raise third party finance.
Effect of the re-domicile from Canada to Jersey, Channel Islands
Following the re-domicile of the Company from Canada to Jersey with effect from March 19, 2016, the dividend is no longer subject to Canadian withholding tax and it is no longer eligible for the purposes of the Income Tax Act (Canada).
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe, Caledonia’s primary asset is a 49% interest in an operating gold mine in Zimbabwe (“Blanket Mine”). Caledonia’s shares are listed on NYSE American (symbol: CMCL) and on the Toronto Stock Exchange (symbol: CAL) and depositary interests representing the shares are traded on London’s AIM (symbol: CMCL).
At June 30, 2017, Caledonia had cash of approximately US$10.9m. Blanket Mine plans to increase production from 50,351 ounces of gold in 2016 to approximately 80,000 ounces by 2021; Blanket Mine’s target production for 2017 is 52,000 to 57,000 ounces. Caledonia expects to publish its results for the quarter to 30 September 2017 on November 15, 2017.
