By Business Reporter
BLANKET Gold Mine is targeting to increase gold output to 80 000 ounces by 2021 following a US$70 million investment expected to be funded from internal cash generation and existing cash resources.
In a press release, Caledonia Mining Corporation PLC revealed its forecasted output prospects for the Zimbabwean mine, with a plan to almost double current production within the next three years.
“Blanket Mine plans to increase production from 56,136 ounces of gold in 2017 to approximately 80,000 ounces by 2021.”
Blanket Mine is anticipating output of between 55,000 to 59,000 ounces in 2018.
In 2013, Blanket Mine produced approximately 45,500 ounces of gold.
Caledonia’s shares are listed on the New York Stock Exchange (NYSE) and on the Toronto Stock Exchange and depositary interests representing the shares are traded on London Stock Exchange.
As at June 30, 2018, Caledonia had cash of approximately US$5.3 million.
Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy which the board of directors adopted in 2014, which has seen the listed giant declaring a quarterly dividend of 6.875 cents per share.
“Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) today announces that its board of directors has declared a dividend of six and seven eighths United States cents (US$0.06875) on each of the Company’s common shares.”
“Shareholders and depositary interest holders in Canada and the UK 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 on the record date.”
“It is expected that the current dividend of twenty-seven and a half United States cents per annum, paid in equal quarterly instalments, will be maintained.”
In August 2018, Caledonia announced that it had signed a memorandum of understanding to increase its shareholding in Blanket Mine to 64%, subject to the execution of a legally binding sale agreement and regulatory approvals.
Caledonia acquired the Blanket Mine from Kinross Gold Corporation in April 2006. Following the implementation of indigenisation with effect from September 5, 2012, Caledonia now owns 49% of Blanket. “Caledonia’s primary asset is a 49% interest in an operating gold mine in Zimbabwe (“Blanket Mine”). ENDS//