WH Ireland analyst Paul Smith says this morning about Caledonia Mining “Caledonia today announces its ninth quarterly dividend and a revision to its dividend policy. Following the announcement in December, the dividend will be 1.125 USc (UK ex-dividend date 14/01/16).
The dividend policy will be changed following the change in reporting currency from Canadian dollars to US dollars; US dollars being the currency that revenues are received in and the majority of the costs are paid. The new policy will pay an annual dividend of 4.5USc per year in four quarterly instalments of 1.125USc. This is equivalent to the former annual 6c (Canadian) dividend as the previous policy with the current US$: Canadian $ exchange rate. Caledonia has committed to maintain this dividend despite the large (internally funded) investment in the Blanket gold mine in Zimbabwe.
Caledonia remains one of the few mining companies which pays a robust dividend and has a revenue growth pipeline. “