Blanket Mine, a GWANDA-BASED gold mining company, is expected to commission its Central Shaft this quarter, adding momentum this year to the company’s output target of between 61 000 and 67 000 ounces.
In July 2019, Caledonia Mining Company, operated by Blanket Mine, completed the Central Shaft sinking program.
Due to the adverse effects of the Covid-19 pandemic, the equipping of the shaft was slower than expected.
The New York Stock Exchange and the mining company Aim-listed said:
“During the first quarter of 2021, the Central Shaft is planned to be commissioned.
“Targets production of 61 000 to 67 000oz of gold in 2021; targets production of 80 000oz of gold per annum from 2022.”
Caledonia, meanwhile, has announced an increased quarterly dividend payment of US$0.11 on each of the shares of the company.
The mining group said the analysis reflects a 10 percent rise from the previous 10-cent quarterly dividend paid in October 2020.
Caledonia said increased production, a high gold price and strong cost management have continued to contribute to improved cash generation, which has given the board confidence that until the benefits of Central Shaft are recognized, the company can maintain a higher level of dividend distributions.
Mr. Steve Curtis, chief executive officer of the mining company, said:“We are pleased to report a further 10 percent rise in our quarterly dividend, reflecting a total 60 percent increase in the dividend since the first increase in October 2019, the fourth increase in the past 15 months.
‘The output goals are 61 000 to 67 000 oz of gold in 2021; the production targets are 80 000 oz of gold per annum as of 2022.’
The board’s decision to raise the dividend represents our continued and growing confidence in the outlook for our business.
He said that as they reach the end of Blanket Mine’s six-year investment program, his company hopes that the combination of increasing output and decreasing capital investment over the next two years will give them the ability to consider more dividend increases.
Caledonia reported last month that it had entered into an option agreement for Glen Hume and Connemara North, granting the mining company exclusive rights to explore and eventually purchase the mining claims if the exploration is successful and at its absolute discretion. — @okazungaa
This, Mr. Curtis said, is in addition to providing investment funds for new ventures, including opportunities for exploration at Glen Hume and Connemara North in the Midlands province.