Caledonia Mining Corporation Plc today told DirectorsTalk that the Board of Directors has declared dividend number 14 of one and three-eighths United States cents (US$0.01375) on each of the Company‘s common shares.
The dividend represents an annualised dividend of 5.5 cents per share. In July 2016, Caledonia increased its quarterly dividend by 22 per cent from one and one-eighth cents per share to one and three-eighths cents per share. The dividend which is declared today is maintained at the increased level.
The relevant dates relating to the dividend are as follows:
· Ex-dividend date for shares held on the Canadian register: 12 October 2016
· Ex-dividend date for shares held through depositary interests in Crest in the UK: 13 October 2016
· Record date: 14 October 2016
· Dividend cheque mailing date: 28 October 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, “Blanket Mine’s operating performance continues to improve with the investment programme being implemented as planned, resulting in continued robust cash generation for Caledonia Mining and Blanket’s indigenous partners.
“The investment that all stakeholders have made in the Blanket Mine over the past 20 months continues to bear fruit with increased operational flexibility and production volumes. I am now confident that our production guidance of 50,000 ounces in 2016 will be achieved.
“The planned increase in production up to 80,000 ounces by 2021 is expected to result in a lower average cost of production as fixed costs are spread across an increased number of gold ounces. I therefore expect that the benefits of incremental volume will become increasingly evident in the months and years to come.”
Caledonia’s Dividend Policy
Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy. In 2014, the Company paid an annual aggregate dividend of six Canadian cents (CAN$0.060) per common share. The first quarterly dividend was paid on 31 January 2014 and subsequent quarterly dividends have been paid thereafter at the end of April, July and October.
On 16 December 2015 Caledonia announced that henceforth it will report its financial results in United States Dollars, commencing with the results for the quarter and 12 months to 31 December 2015, which were released on 21 March 2016. The dividend paid at the end of January 2016 was therefore denominated in United States Dollars at 1.125 United States cents per share. In July 2016 the quarterly dividend was increased by 22 per cent to 1.375 United States cents per share.
Effect of the re-domicile from Canada to Jersey, Channel Islands
On 19 March 2016 Caledonia re-domiciled from Canada to Jersey, Channel Islands, after which dividends paid by Caledonia are no longer subject to Canadian withholding tax. The dividend paid at the end of April 2016 was the first dividend that Caledonia paid as a Jersey-domiciled company and was paid without the deduction of Canadian withholding tax.
Following the re-domicile of the company from Canada to Jersey with effect from 19 March 2016, the dividend is no longer eligible for the purposes of theIncome Tax Act (Canada).
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe, Caledonia’s primary asset is a 49% interest in an operating gold mine in Zimbabwe (“Blanket”). Caledonia’s shares are listed in Canada on the Toronto Stock Exchange as “CAL”, on London’s AIM as “CMCL” and are also traded on the American OTCQX as “CALVF”.
At 30 June 2016, Caledonia had net cash of US$10.6m. Blanket plans to increase production from 42,800 ounces in 2015 to approximately 80,000 ounces in 2021; Blanket’s target production for 2016 is approximately 50,000 ounces. Caledonia expects to publish its results for the quarter to 30 September 2016 on 14 November 2016.
