Caledonia Mining Corporation Plc told DirectorsTalk that the Board of Directors has declared an increased quarterly dividend of one and three eighths United States cents (US$0.01375) on each of the Company’s common shares.
The increased dividend represents an annualised dividend of 5.5 cents per share and is an increase of 22 per cent from the previous annualised dividend of 4.5 cents per share.
The relevant dates relating to the increased dividend are as follows:
-- Ex-dividend date for shares held on the Canadian register: 13 July 2016
— Ex-dividend date for shares held through depositary interests in Crest in the UK: 14 July 2016
-- Record date: 15 July 2016 -- Dividend cheque mailing date: 29 July 2016
Shareholders and depositary interest holders who are registered in Canada and the UK respectively 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 at noon on the record date.
Chief Executive Officer, Steve Curtis, said, “The declaration of the increased dividend reflects the Company’s confidence that its earnings and cash generation will increase.
“In late March 2016, production started from the Blanket ore bodies below 750 meters following completion of the No. 6 Winze. In March 2016, the decline development into the AR South ore body below 750 meters was also completed and further improved Blanket’s operational flexibility. I am now increasingly confident that the projected production targets of 50,000 ounces in 2016 and 65,000 ounces in 2017 will be realised.
“The planned increases in production in 2016 and 2017 are expected to result in a lower average cost of production as fixed costs are spread across an increased number of gold ounces. Approximately 80 per cent of Blanket’s costs and 100 per cent of Caledonia’s costs are fixed and the marginal cost is approximately $160 per ounce.
“Notwithstanding the increased dividend, Caledonia intends to retain a robust balance sheet so that it can take advantage of further investment opportunities.”
