1st Apr 2020 12:00
(Alliance News) - Gold miner Caledonian Mining Corp on Wednesday said the Covid-19 pandemic has prompted it to defer the dividend for the second quarter.
Caledonia said the decision has been made due to the uncertainty caused by the pandemic for businesses. The dividend will be constantly reviewed.
The company, which has paid quarterly dividends since 2014, said production at the Blanket gold mine in Zimbabwe is continuing but at a lower rate than targeted due to measures brought in to reduce the risk of infections among the workforce.
Chair Leigh Wilson commented: "The Covid-19 pandemic has elevated global levels of uncertainty. I have full confidence our business will emerge from this situation substantially unchanged, but, out of an abundance of caution, we have decided to defer the dividend decision until we have greater clarity on the wider implications of this highly fluid situation.
"The resumption of dividends will depend on, inter alia, Blanket maintaining a reasonable level of production; receiving payment in full and on-time for all gold sales; being able to make the necessary local and international payments and being able to replenish its supplies of consumables and other items."
"Our balance sheet remains in an enviable position and the dividend remains comfortably affordable. Today's announcement is a continuation of the prudent approach to capital allocation that we have followed for several years, a path that we expect to continue," Wilson continued.
Shares were 1.7% lower on Wednesday at midday in London at 708.00 pence each.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Caledonia Min