In order to report more accurately the true performance of its business, Caledonia Mining Corporation has told DirectorsTalk that the reporting currency for all future financial reporting will be the United States dollar instead of the Canadian dollar. This change will take effect in the reporting of the results for the quarter and 12 months to December 31, 2015 which will be released in late March, 2016.
All of the revenues and operating costs at the Blanket Mine in Zimbabwe are denominated in US dollars. A very small proportion of Caledonia’s costs are denominated in South African rands, Canadian dollars and British pounds. The recent devaluation of the Canadian dollar against the United States dollar means that the continued reporting of Caledonia’s financial results in Canadian dollars no longer accurately reflects Caledonia’s true performance.
Caledonia currently pays a quarterly dividend of 1.5 Canadian cents per share. The next quarterly dividend is scheduled to be paid at the end of January 2016. Caledonia’s board expects to maintain the current value of the Canadian dollar-denominated dividend payment in US dollar terms; thus at the current exchange rate, the quarterly dividend of 1.5 Canadian cents would be approximately 1.09 US cents per share. A further announcement relating to the next dividend payment can be expected in early January 2016.