Caledonia declares another increased quarterly dividend
October 01 2020 - 2:00AM
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
ten United States cents (US$0.10) on each of the Company's common
shares.
Highlights
- 18% increase from the previous
quarterly dividend of 8.5 cents paid in July 2020
- 45% cumulative increase from the
level of 6.875 cents since October 2019
- Third increase in the dividend
since October 2019
- Significant business resilience
demonstrated through the COVID 19 pandemic
- Central Shaft equipping on track to
be completed in Q4 2020 and commissioning to be completed by end of
Q1 2021
- Stable production, a high gold
price and good cost control have resulted in increased cash
generation in 2020; this has given the Board confidence that the
business can sustain a higher level of dividend distributions
before the benefits of the completion of Central Shaft are
realised.
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
“We are pleased to announce an 18 per cent
increase in our quarterly dividend, the third increase in the past
nine months, representing a cumulative 45 per cent increase on the
dividend in the past 12 months. 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
Q2 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 anticipate that the rate
of capital expenditure will begin to reduce in 2021. We expect the
combination of rising production and declining capital investment
to give us greater flexibility to consider further increases in the
dividend in addition to possible investment in new projects.”
The relevant dates relating to the dividend are
as follows:
-
Ex-dividend date: October 15, 2020
-
Record date: October 16, 2020
-
Dividend cheque mailing date: October 30, 2020
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 of Directors
adopted in 2014. The Board will consider future increases in the
dividend as appropriate and 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.
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