Caledonia Mining posts record quarterly gold output from Blanket Mine, ups dividend

Caledonia Mining Corporation PLC (LON:CMCL) reported record quarterly gold production from the Blanket Mine in Zimbabwe.

It produced about 16,710 ounces of gold during the second quarter, up 23.8% on the 13,499 ounces produced in the same period of 2020.

Gold output for the first half of 2021 was 29,907 ounces, an increase of about 7.8% from the first half of 2020.

Caledonia maintained its 2021 full-year production guidance of 61,000 to 67,000 ounces.

“Having got off to a slow start to the year, for production to be 7.8% above the first half of 2020 and 23% ahead of the corresponding quarter is an outstanding achievement and leaves us well placed to meet our full-year guidance,” said chief executive Steve Curtis.

“During the quarter we also announced that Central Shaft was operational; this has been a huge feat by the team. We are currently working hard to achieve the expansion and we remain on track to hit our 80,000-ounce target in 2022.”

In a separate statement, the company announced the sixth increase in its quarterly dividend since October 2019 and said the scheduled ramp up in production, a firm gold price and good cost control give it confidence that the business can sustain a higher level of dividend.

It declared a dividend of US$0.13 per share for the quarter, up from US$0.12 for the preceding quarter

“We are pleased to announce an additional eight per cent increase in our quarterly dividend, the sixth increase in the past two years,” said Curtis. “This represents a cumulative 89 per cent rise in the dividend since the first increase in October 2019.

“The decision by the board to increase the dividend reflects our continued confidence in the outlook for our business. 

“With the Central Shaft now in operation, the anticipated combination of rising production and declining capital investment gives us confidence to further increase the dividend payment in addition to providing funding for investment in new projects, including the exploration prospects at Glen Hume and Connemara North, as announced at the end of 2020,” he concluded.

Story by ProactiveInvestors