TIDMCMCL
RNS Number : 3783B
Caledonia Mining Corporation PLC
04 April 2017
Caledonia Mining Corporation Plc
Caledonia declares quarterly dividend of 1.375 cents per
share
(TSX: CAL, OTCQX: CALVF, AIM: CMCL)
4 April 2017: Caledonia Mining Corporation Plc ("Caledonia" or
the "Company") today announces that, in line with its dividend
policy, the Board of Directors has declared a dividend of one and
three eighths United States cents (US$0.01375) on each of the
Company's common shares.
The relevant dates relating to the increased dividend are as
follows:
-- Ex-dividend date for shares held on the Canadian register: 12 April 2017
-- Ex-dividend date for shares held through depositary interests
in CREST in the UK: 13 April 2017
-- Record date: 18 April 2017
-- Dividend cheque mailing date: 28 April 2017
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:
"Notwithstanding a record level of capital investment in 2016
and the continued volatility in the gold price, Caledonia has
maintained the quarterly dividend at the higher level of 1.375
cents per share, which we announced in July 2016.
"We are targeting 60,000 ounces of production from the Blanket
mine during 2017 as we progress our aim towards annual production
of 80,000 ounces by 2021. I am confident that, as gold production
continues to increase at the Blanket Mine, as a result of our
investment plan, the cost per ounce of gold produced will continue
to fall, with a commensurate improvement in cash generation.
"Caledonia remains committed to distributing cash to
shareholders whilst simultaneously retaining a robust balance sheet
to enable us to take advantage of further opportunities."
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 were paid thereafter.
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. 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 Caledonia announced a 22 per cent increase in the
quarterly dividend to 1.375 United States cents per share. The
increase reflects the Company's confidence that its earnings and
cash generation will increase as production at the Blanket Mine
increases, due to the continued implementation of the Investment
Plan.
It is expected that the increased dividend of 5.5 United States
cents per annum, paid in equal quarterly instalments, will be
maintained. Caledonia continues to maintain its strong financial
position and is satisfied that it can implement its stated growth
strategy without the need to raise third party finance.
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 19 March 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).
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe,
Caledonia's primary asset is a 49 per cent interest in an operating
gold mine in Zimbabwe ("Blanket"). Caledonia's shares are listed in
Canada on the Toronto Stock Exchange as "CAL", its depositary
interests representing the shares are traded on London's AIM as
"CMCL" and the shares are also traded on the American OTCQX as
"CALVF".
At 31 December 2016, Caledonia had cash of US$14.3 million.
Blanket plans to increase production from 50,351 ounces in 2016 to
approximately 80,000 ounces in 2021; Blanket's target production
for 2017 is approximately 60,000 ounces. Caledonia expects to
publish its results for the quarter to 31 March 2017 on 15 May
2017.
For further information please contact:
Caledonia Mining Corporation WH Ireland
Plc Adrian Hadden/Nick Prowting
Mark Learmonth Tel: +44 20 7220 1751
Tel: +44 1534 679800
marklearmonth@caledoniamining.com
Maurice Mason Blytheweigh
Tel: +44 759 078 1139 Tim Blythe/Camilla Horsfall/Megan
mauricemason@caledoniamining.com Ray
Tel: +44 20 7138 3204
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.
Shareholders, potential shareholders 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. Shareholders 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DIVZMGGDGFRGNZM
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April 04, 2017 02:01 ET (06:01 GMT)
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