Gold miner also wants to consolidate shares
Caledonia Mining (TSX: T.CAL, Stock Forum) Monday announced that it proposing to pay an initial dividend of half a penny (0.5 cents) per ordinary share, which is driven by its "sustainable business model and significant free cash generation," this according to a company news release.
Following the proposed dividend, the company will also attempt to consolidate its common shares on the basis of 1 new Caledonia share for 10 existing Caledonia shares.
"Over the past three years Caledonia has become a profitable and cash generative company with exciting growth and investment opportunities. In light of our cash position and strong cash generation, the Caledonia Board feels it appropriate to propose a dividend of one-half cent per existing common share and is confident that the proposed dividend will not reduce our ability to continue to invest in our exciting portfolio of assets, expanding gold production at Blanket, and continuing exploration on our Nama Project," said Caledonia Mining President and CEO Stefan Hayden.
Caledonia’s primary asset is the Blanket gold mine in Zimbabwe, which produced 12,918 ounces of gold at an average cash cost of $508 during its most recent quarter.