Monday, February 10, 2014

(NEWZIMBABWE) Indigenised mine ups dividend 20pc
25/11/2013 00:00:00
by Business Reporter

CALEDONIA mining has confirmed a 20% hike in the ordinary dividend for next year and a new quarterly payment policy.

The Canada-based miner, which owns 49% of the Blanket gold mine in Zimbabwe, has announced a dividend of six Canadian cents for 2014 with a first quarterly payment of C1.5c to be paid in January.

Caledonia announced a C5c payment for the 2013 trading year in April, which followed a C5c per share special payment in February. The special was the company’s maiden dividend.

Caledonia is currently debt-free and had gross cash of over C$25m outside Zimbabwe at the end of September.

The company expects Blanket’s production to expand to 48,000 ounces of gold in 2014 and 52,000 ounces of gold in 2015. Future dividends will depend on its performance and its capital investment requirements, it added.

The planned pay-out represents a yield of 7.4% at current prices and it makes Caledonia something of a rarity among the junior miners; an income stock.

“To increase the dividend is a major show of confidence, particularly in the current gold price environment,” said one analyst.

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