Caledonia Mining Corporation Plc COM SHS NPV (DI) (LON:CMCL) today announced 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.
The relevant dates relating to the dividend are as follows:
· Ex-dividend date for shares held on the share register: January 10, 2018
· Ex-dividend date for shares held through depositary interests in CREST in the UK: January 11, 2018
· Record date: January 12, 2018
· Dividend cheque mailing date: January 26, 2018
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.
Caledonia Mining Corporation Plc COM SHS NPV (DI) 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 at the Blanket Mine (the Investment Plan).
“2017 has been another significant year for Caledonia having announced at the start of November a significant and continued increase in Blanket Mine’s resource base and, shortly thereafter, an extension to the Central Shaft project to deepen the shaft by two extra production levels in order to access the increased resource base at those depths.
“Production guidance for 2017 is between 54,000 to 56,000 ounces of gold and we expect to announce Blanket Mine’s gold production for 2017 later this month. Blanket Mine continues to make progress towards its goal of 80,000 ounces per year by 2021 as a result of the implementation of the Investment Plan.
“Caledonia intends to continue to distribute cash to shareholders whilst simultaneously retaining a robust balance sheet and we look forward to updating the market on our recent performance with our fourth quarter and annual results for 2017, which are expected to be released on or about March 20, 2018.”
Caledonia’s 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).
