Central Shaft Commissioning and Production Goals
The Gwanda-based gold mining company, Blanket Mine, plans to commission its Central Shaft this quarter. This move will boost the company’s output target. They aim to produce between 61,000 and 67,000 ounces this year.
Blanket Mine operates Caledonia Mining Company. They completed the Central Shaft sinking program in July 2019.
However, the Covid-19 pandemic slowed the shaft equipping process.
The New York Stock Exchange and Aim-listed mining company recently shared its updated schedule.
“They plan to commission the Central Shaft during the first quarter of 2021.
“The 2021 production target sits between 61,000 and 67,000 ounces of gold. By 2022, they target 80,000 ounces annually.”
Caledonia Increases Dividend Payments
Meanwhile, Caledonia announced a higher quarterly dividend payment. Shareholders will receive US$0.11 per share.
The mining group noted this reflects a 10 percent rise. This increase compares to the previous 10-cent dividend paid in October 2020.
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Caledonia cited increased gold production, high gold prices, and strong cost management. These factors significantly improved cash generation.
The board feels confident about maintaining higher dividend distributions. They will sustain this while waiting to see the full benefits of the Central Shaft.
Mr. Steve Curtis is the chief executive officer of the mining company. He expressed pleasure over the recent financial milestones.
“We are pleased to report a further 10 percent rise in our quarterly dividend. This marks a total 60 percent increase since October 2019. It represents the fourth increase in just 15 months.”
The board decided to raise the dividend once again. This decision represents their growing confidence in the business outlook.
“As reported in our results for the third quarter of 2020, the company continues to perform well, supported by strong production and a firm gold price.”
Future Investments and Exploration Ventures
Blanket Mine is currently ending its six-year investment program. Curtis hopes output will increase while capital investments decrease.
Over the next two years, this combination could allow further dividend increases.
Last month, Caledonia reported a new option agreement. This covers the Glen Hume and Connemara North areas.
The agreement grants the company exclusive rights to explore the mining claims. If successful, Caledonia can purchase these claims at its own discretion. — @okazungaa
Curtis noted this agreement provides investment funds for new ventures. These ventures include exciting exploration opportunities in the Midlands province.
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