Caledonia Mining Declares Maiden Dividend -
Caledonia Mining News and Articles on Proactive Investors
Caledonia Mining declares maiden dividend
( LON:CMCL TSE:CAL) has marked a further milestone in its
development by declaring a maiden dividend.
The board has declared a first dividend payment of half a cent
(C$0.005) per share.
It comes after the firm held a special meeting of shareholders,
which approved the...
CALVF Today's press release -
CALVF company has a lot of US $millions in cash on hand and
is offering a dividend at the same time -
"The dividend of one-half cent per pre-consolidated share
is approximately one-tenth of Caledonia's cash on hand.
Caledonia retains the financial capacity to continue to invest
in expanding its business."
Earlier this month, broker Canaccord suggested the firm was
attractive to investors on a number of fronts.
"With the net cash balance building, Caledonia offers a premium
dividend, production and earnings growth versus peers,”
The company trades on a 65% discount to peers on three key metrics,
while average annual free cash flow will be
US$33m over the next 5 years.
This will allow the company to fund its five-year investment
programme of US$37mln internally, while leaving ample room for
dividend growth, argued Canaccord.
It has a target price of 16p/share,
Caledonia will have US$55mln in net cash
by the end of 2014, equal to 90% of
the current market capitalisation.