TIDMCMCL
RNS Number : 6150Y
Caledonia Mining Corporation PLC
03 January 2020
Caledonia Mining Corporation Plc
Caledonia declares an increased quarterly dividend
St Helier, January 3, 2020 - Caledonia Mining Corporation Plc
("Caledonia" or the "Company") today announces that the Board of
Directors has declared an increased quarterly dividend of
seven-and-a- half United States cents (US$0.075) on each of the
Company's common shares.
Highlights
-- 9.1 per cent increase from the previous quarterly dividend of 6.875 cents
-- Financial performance has improved due to increased
production and the continued higher gold price
-- Central Shaft to be commissioned in Q4 2020
-- Target production at 80,000 ounces of gold per annum from 2022
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
"I am pleased to announce a 9.1 per cent increase in the
dividend which reflects our increased confidence in the outlook for
our business. As we reported in mid-November 2019 when we published
the results for the third quarter of 2019, our financial
performance has improved due to increased production and the
continued higher gold price. This improvement has continued through
the final quarter of 2019.
"As we approach the end of the five-year investment programme at
Blanket Mine, we anticipate the rate of capital expenditure will
begin to reduce from the middle of 2020, which gives us greater
flexibility to consider deploying some of our cash reserves on an
increased dividend.
"We expect the Central Shaft to be commissioned in the fourth
quarter of 2020; thereafter we look forward to further increases in
operating cash flow as production increases to the target rate of
80,000 ounces of gold per annum from 2022, as capital expenditure
falls further and we begin to realise the operational efficiencies
arising from the new shaft.
"The Board will review Caledonia's future dividend distributions
as appropriate while considering the balance between delivering
returns to shareholders, pursuing the significant growth
opportunities within Zimbabwe and maintaining a prudent approach to
financial management."
The relevant dates relating to the dividend are as follows:
-- Ex-dividend date: January 16,2020
-- Record date: January 17, 2020
-- Dividend cheque mailing date: January 31, 2020
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's Dividend Policy
Caledonia'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 in line with its prudent approach to risk
management.
About Caledonia Mining
Caledonia's primary asset is a 49% interest in an operating gold
mine in Zimbabwe ("Blanket Mine"). In November 2018, Caledonia
announced that it had signed a legally binding sale agreement to
increase its holding in Blanket Mine to 64%, subject to receipt of,
amongst other things, regulatory approvals. Caledonia's shares are
listed on the NYSE American (symbol: CMCL) and on the Toronto Stock
Exchange (symbol: CAL) and depositary interests representing the
shares are traded on London's AIM (symbol: CMCL).
As at September 30, 2019, Caledonia had cash of approximately
US$8.0 million. Blanket Mine plans to increase production from
54,511 ounces of gold in 2018 to approximately 75,000 ounces in
2021 and approximately 80,000 ounces in 2022; Blanket Mine's target
production for 2019 is between 50,000 and 53,000 ounces[1].
Caledonia expects to publish its results for the year to December
31, 2019 on or around March 20, 2020.
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Maurice Mason Tel: +44 759 078 1139
WH Ireland Tel: +44 20 7220 1751
Adrian Hadden/James Sinclair-Ford
Blytheweigh Tel: +44 207 138 3204
Tim Blythe/Camilla Horsfall/Megan
Ray
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 Information
Information 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; 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] The projected gold production figures in this news release
are explained in the management discussion and analysis
("MD&A") dated November 13, 2019. Refer to technical report
dated 13 February 2018 entitled "National Instrument 43-101
Technical Report on the Blanket Mine, Gwanda Area, Zimbabwe
(Updated February 2018), a copy of which was filed by the Company
on SEDAR on March 2, 2018 for the key assumptions, parameters, and
methods used to estimate the mineral resources and mineral reserves
from which planned gold production, as set out in this news
release, is to be derived and risks that could materially affect
the potential development of the mineral resources or mineral
reserves. Mr Paul Matthews, the Company's qualified person and
Group Mineral Resource Manager, supervised the preparation of the
technical information in the technical report and supervised the
preparation of the technical information contained in this news
release.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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