Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) said it is on track to hit the top end of production guidance as it declared its quarterly dividend – a pay-out of 14 US cents per share.
Annualised, the shareholder distribution equates to a yield of just under 6%.
In the update, chief executive Mark Learmonth told investors: “The dividend continues to be a central part of our strategy, as we continue to manage returning money to shareholders with production growth and de-risking the business from being a single asset producer.”
The wider market also learned that gold production so far this year has been strong, exceeding Caledonia’s expectations and putting it on track to hit the top end of guidance of 73,000 to 80,000 ounces.
Against a generally gloomy market backdrop, the shares opened marginally higher at 850p each.
The Zimbabwe-focused miner said it will restart the oxides operation at the recently-acquired Bilboes project, 75km north of Bulawayo.
It is part of the company’s bid to become a ‘multi-asset gold producer’. With this in mind, it is assessing further opportunities in Zimbabwe.