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Caledonia Mining raises dividend and says more to come as Blanket upgrade nears completion

“We expect the combination of rising production and declining capital investment to give us greater flexibility to consider further increases in the dividend"

Caledonia Mining Corporation PLC -

Caledonia Mining Corporation PLC (LON:CMCL) has increased its quarterly dividend payment by 18% to 10c per share.

This is the third dividend increase since October 2019, the Zimbabwe-focused gold miner said, with the cumulative increase over the past twelve months now 45%.

Caledonia added the equipping of its central shaft at the Blanket Mine is on schedule to be completed in the final quarter of this year with commissioning by end first quarter 2021.

“Stable production, a high gold price and good cost control have resulted in increased cash generation in 2020; this has given the board confidence that the business can sustain a higher level of dividend distributions before the benefits of the completion of central shaft are realised,” the miner said in a statement.

Steve Curtis, chief executive, added: “As we reported in our Q2 2020 results, the business continues to perform well, supported by strong production and a firm gold price.

"As we approach the end of the six-year investment programme at Blanket Mine, we anticipate that the rate of capital expenditure will begin to reduce in 2021.

“We expect the combination of rising production and declining capital investment to give us greater flexibility to consider further increases in the dividend in addition to possible investment in new projects."

Quick facts: Caledonia Mining Corporation PLC

Price: 1400 GBX

AIM:CMCL
Market: AIM
Market Cap: £169.66 m
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