Caledonia Mining Corporation PLC (LON:CMCL) has burnished its reputation for being one of the few junior gold stocks on London’s junior market paying a dividend – and a decent one at that.
The company, which runs the Blanket Mine in Zimbabwe, is ready to distribute its latest quarterly tranche – 1.375 cents a share, giving an annual payout of 5.5p.
The ex-dividend dates are January 11 for Canadian investors and a day later for holders of the shares here in the UK.
The distribution of cash comes as Caledonia continues to invest in ramping up production from the deeper lying mineralisation at Blanket.
Production is forecast to be in the order of 60,000 ounces of the yellow metal this year, rising to 80,000 ounces by 2021.
“The continued payment of dividends to our shareholders is a key component of our strategy as we invest in future production growth and we are particularly proud of being able to continue to pay a healthy dividend whilst we invest in expanding production,” said Caledonia chief executive Steve Curtis.
“I am confident that as gold production continues to increase at the Blanket Mine as a result of our investment plan, the cost per ounce of gold produced will continue to fall.”