Caledonia Mining Corporation Plc (“Caledonia” or the
“Company”) (NYSE AMERICAN: CMCL; AIM: CMCL) is pleased to
announce that the Board of Directors has declared an increased
quarterly dividend of eleven United States cents (US$0.11) on each
of the Company's shares.
Highlights
- 10% increase from the previous
quarterly dividend of 10 cents that was paid in October 2020.
- 60% cumulative increase from the
level of 6.875 cents since October 2019.
- 4th increase in the quarterly
dividend since October 2019.
- Central Shaft scheduled to be
commissioned during the first quarter of 2021.
- Target production of 61,000 to
67,000 ounces of gold in 2021; target production of 80,000 ounces
of gold per annum from 2022.1
- Increasing production, a high gold
price and good cost control have continued to result in increased
cash generation which has given the Board confidence that the
business can sustain a higher level of dividend distributions
before the benefits of Central Shaft are realised.
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
“We are pleased to announce an additional 10 per
cent increase in our quarterly dividend, the fourth increase in the
past 15 months representing a cumulative 60 per cent rise in the
dividend since the first increase in October 2019. The decision by
the Board to increase the dividend reflects our continued and
increasing confidence in the outlook for our business. As we
reported in our third quarter 2020 results, the business continues
to perform well supported by strong production and a firm gold
price.
“As we approach the end of the six-year
investment programme at Blanket Mine, we expect the combination of
rising production and declining capital investment over the next
two years will give us the scope to consider further increases in
the dividend in addition to providing funding for investment in new
projects, including the exploration prospects at Glen Hume and
Connemara North as announced on 10 and 17 December 2020,
respectively.”
The relevant dates relating to the dividend are as follows:
- Ex-dividend date: January 14, 2021
- Record date: January 15, 2021
- Dividend cheque mailing date: January 29, 2021
Shareholders with a registered address in the UK
will be paid in Sterling.
Caledonia's Dividend
PolicyCaledonia's strategy to maximise shareholder value
includes a quarterly dividend policy which the Board adopted in
2014. The Board will consider future increases in the dividend as
appropriate in line with its prudent approach to risk
management.
For further information please contact:
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802Tel: +44 7817 841793 |
|
|
WH IrelandAdrian Hadden/James Sinclair-Ford |
Tel: +44 20 7220 1751 |
|
|
BlytheweighTim Blythe/Megan Ray |
Tel: +44 207 138 3204 |
|
|
3PPBPatrick ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +1 203 940 2538 |
Note: This announcement contains inside
information which is disclosed in accordance with the Market Abuse
Regulation (EU) No. 596/2014.
Cautionary Note Concerning
Forward-Looking InformationInformation and statements
contained in this news release that are not historical facts are
“forward-looking information” within the meaning of applicable
securities legislation that involve risks and uncertainties
relating, but not limited to Caledonia’s current expectations,
intentions, plans, and beliefs. Forward-looking information can
often be identified by forward-looking words such as “anticipate”,
“believe”, “expect”, “goal”, “plan”, “target”, “intend”,
“estimate”, “could”, “should”, “may” and “will” or the negative of
these terms or similar words suggesting future outcomes, or other
expectations, beliefs, plans, objectives, assumptions, intentions
or statements about future events or performance. Examples of
forward-looking information in this news release include:
production guidance, estimates of future/targeted production rates,
and our plans and timing regarding further exploration and drilling
and development. This forward-looking information is based, in
part, on assumptions and factors that may change or prove to be
incorrect, thus causing actual results, performance or achievements
to be materially different from those expressed or implied by
forward-looking information. Such factors and assumptions include,
but are not limited to: failure to establish estimated resources
and reserves, the grade and recovery of ore which is mined varying
from estimates, success of future exploration and drilling
programs, reliability of drilling, sampling and assay data,
assumptions regarding the representativeness of mineralization
being inaccurate, success of planned metallurgical test-work,
capital and operating costs varying significantly from estimates,
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the
development of projects and other factors.Security holders,
potential security holders and other prospective investors should
be aware that these statements are subject to known and unknown
risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the
forward-looking statements. Such factors include, but are not
limited to: risks relating to estimates of mineral reserves and
mineral resources proving to be inaccurate, fluctuations in gold
price, risks and hazards associated with the business of mineral
exploration, development and mining, risks relating to the credit
worthiness or financial condition of suppliers, refiners and other
parties with whom the Company does business; inadequate insurance,
or inability to obtain insurance, to cover these risks and hazards,
employee relations; relationships with and claims by local
communities and indigenous populations; political risk; risks
related to natural disasters, terrorism, civil unrest, public
health concerns (including health epidemics or outbreaks of
communicable diseases such as the coronavirus (COVID-19));
availability and increasing costs associated with mining inputs and
labour; the speculative nature of mineral exploration and
development, including the risks of obtaining or maintaining
necessary licenses and permits, diminishing quantities or grades of
mineral reserves as mining occurs; global financial condition, the
actual results of current exploration activities, changes to
conclusions of economic evaluations, and changes in project
parameters to deal with unanticipated economic or other factors,
risks of increased capital and operating costs, environmental,
safety or regulatory risks, expropriation, the Company’s title to
properties including ownership thereof, increased competition in
the mining industry for properties, equipment, qualified personnel
and their costs, risks relating to the uncertainty of timing of
events including targeted production rate increase and currency
fluctuations. Security holders, potential security holders and
other prospective investors are cautioned not to place undue
reliance on forward-looking information. By its nature,
forward-looking information involves numerous assumptions, inherent
risks and uncertainties, both general and specific, that contribute
to the possibility that the predictions, forecasts, projections and
various future events will not occur. Caledonia undertakes no
obligation to update publicly or otherwise revise any
forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
________________________1 Mr Dana Roets (B Eng
(Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is
the Company's qualified person as defined by Canada's National
Instrument 43-101 and has approved any scientific or technical
information contained in this news release.
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