London-listed Caledonia Mining Corporation (AIM:CMCL) declared that it is to increase its quarterly dividend after an improved financial performance and continued high gold prices.
The mining group will boost its quarterly dividend by 9.1% to 6.875 cents per share, this morning’s statement detailed.
Steve Curtis, Chief Executive Officer of Caledonia said the increase reflected an “increased confidence” in its business outlook.
It was the group’s Q3 results in mid-November that originally demonstrated an improved financial performance - “this improvement has continued through the final quarter of 2019,” Curtis emphasised this morning.
Shares in Caledonia Mining Group were trading 2.76% higher at 632p on Friday afternoon.
The group has also said it expects to commission the Central Shaft in the Blanket Mine in Zimbabwe, of which Caledonia owns a 49% interest in, during the fourth quarter.
This will work towards a production target rate of 80,000 ounces of gold per annum from 2022.
"The Board will review Caledonia's future dividend distributions as appropriate,” Curtis further added.
Caledonia's quarterly dividend policy was adopted by the Board of Directors in 2014 as a strategy to maximise shareholder value.
The board will consider the balance between shareholders returns, new growth opportunities and prudent financial management when considering any future increases, the statement explained.
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