Caledonia Mining Corporation has announced an increased quarterly dividend of eight and a half United States cents (US$ 0.085) on each of the Company’s common shares.
This represents a cumulative 24% increase since October 2019.
In a statement released today, the company indicated that stable production, a high gold price and good cost control has given its board of directors confidence that the business can sustain a higher level of dividend distributions.
“We are pleased to announce a 13 percent increase in the dividend which reflects our continuing confidence in the outlook for our business. As were ported in our Q1 2020 results, our financial performance has been strong due to increased production and a higher gold price which has continued into Q2 2020.
“As we approach the end of the five-year investment programme at BlanketMine, we anticipate the rate of capital expenditure will begin to reduce towards the end of 2020, which gives us greater flexibility to consider deploying some of our cash reserves on an increased dividend,” said the company’s chief executive officer Steve Curtis.