Caledonia Mining Corporation Plc SHS NPV (DI) (LON:CMCL) today announced that its board of directors have declared a dividend of six and seven eighths United States cents (US$0.06875) on each of the Company’s common shares.
The relevant dates relating to the dividend are as follows:
· Ex-dividend date: April 12, 2018
· Record date: April 13, 2018
· Dividend cheque mailing date: April 27, 2018
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.
Steve Curtis, Caledonia Mining Corporation Plc Chief Executive Officer, said: “Caledonia maintains its 6.875 cents per share quarterly dividend following a year of strong cash generation in 2017 during which Blanket Mine was able to support both the significant capital investment in the Central Shaft project and dividend payments to its shareholders.
“The business continues its strategic investment in the Central Shaft project, having announced towards the end of last year a significant further increase in Blanket Mine’s resource base and consequently a planned deepening of the Central Shaft in order to access these resources. The Central Shaft has approximately two years of significant capital investment in 2018 and 2019 remaining after which it is expected to be in production in 2020 when the business is anticipated to see a period of substantially increased free cash flow as capital investment declines.
“Caledonia is targeting production of between 55,000 and 59,000 ounces of gold in 2018 as it continues to make progress towards its goal of 80,000 ounces per year by 2021 upon completion of the Central Shaft.”
Caledonia’s Dividend Policy
Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy which the board of directors adopted in 2014.
It is expected that the current dividend of twenty-seven and a half United States cents per annum, paid in equal quarterly instalments, will be maintained.
Effect of the re-domicile from Canada to Jersey, Channel Islands
Following the re-domicile of the Company from Canada to Jersey with effect from March 19, 2016, the dividend is no longer subject to Canadian withholding tax and it is no longer eligible for the purposes of the Income Tax Act (Canada).
