Caledonia Mining Corporation Plc today have told DirectorsTalk that the Board of Directors has declared Dividend Number 12, this being a dividend of one and one eighth United States cents (US$0.01125) on each of the Company‘s common shares held at 5pm, Toronto time on the record date.
The relevant dates relating to the dividend are as follows:
· Ex-dividend date for shares held on the share register: 13 April 2016
· Ex-dividend date for shares held through the issue of depositary interests on Crest in the UK: 14 April 2016
· Record date: 15 April 2016
· Dividend cheque mailing date: 29 April 2016
Shareholders with a registered address in Canada will be paid in Canadian Dollars; holders of the depositary interests which are held on Crest in the UK will be paid in Sterling. The Canadian Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates at noon on the record date.
Caledonia’s Dividend Policy
Caledonia’s strategy to maximize shareholder value includes a quarterly dividend policy. In 2014 and 2015, the Company paid an annual aggregate dividend of six Canadian cents ($0.060) per common share. The first quarterly dividend was paid on 31 January 2014 and subsequent quarterly dividends were paid at the end of April, July and October 2014, at the end of January, April, July and October 2015 and at the end of January 2016.
On 16 December 2015 Caledonia announced that henceforth it will report its financial results in United States Dollars, commencing with the results for the quarter and 12 months to 31 December 2015 which were released on 21 March 2016. The dividend paid at the end of January 2016 was therefore denominated in United States Dollars. The quarterly dividend of 1.125 United States cents is Caledonia’s revised dividend policy and represents an annual dividend of 4.5 United States cents per annum.
It is currently envisaged that the existing dividend policy of 4.5 United States cents per annum, paid in equal quarterly instalments, will be maintained.
Effect of the re-domicile from Canada to Jersey, Channel Islands
On 19 March 2016 Caledonia re-domiciled from Canada to Jersey, Channel Islands. The dividend to be paid at the end of April 2016 is the first dividend that Caledonia will pay as a Jersey-domiciled company and will be paid without the deduction of withholding tax.
Caledonia’s dividends are 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”). Caledonia’s shares are listed in Canada on the Toronto Stock Exchange as “CAL”, on London’s AIM as “CMCL” and are also traded on the American OTCQX as “CALVF”.
Caledonia is debt-free and at 31 December 2015 had cash of US$12.6m. Blanket plans to increase production from 42,800 ounces in 2015 to approximately 80,000 ounces in 2021; Blanket’s target production for 2016 is approximately 50,000 ounces – a 17 per cent increase on the production achieved in 2015. Caledonia expects to publish its results for the quarter to 31 March, 2016 on 12 May 2016.
