Zimbabwe: Caledonia Launches Deepest Gold Mine Shaft, Increases Dividend Pay-Out

(File photo).

NEW York Stock Exchange listed gold miner, Caledonia Mining Corporation (CMC) has launched the deepest gold mine shaft in Zimbabwe which boosts annual productivity going forward.

Speaking on the latest development Tuesday, CMC chief executive officer, Steve Curtis said the project was completed without any casualties.

"I am delighted to announce that our new Central Shaft, which is the deepest shaft of any gold mine in Zimbabwe, is fully operational.

"We can now start to hoist rock, men and material on a daily basis, which will solve our hoisting constraints and facilitate the planned expansion in mine capacity targeting 80,000 oz of gold production per year," he said.

He said commissioning of the central shaft has been the culmination of a six-year project costing approximately $67million, all funded through internal cash flow.

"This has been an owner-funded and built project by the Blanket team and I would like to thank everyone for their hard work and especially for achieving the completion of the shaft without any serious accidents, recording only two lost time injuries," Curtis said.

The company also announced an additional nine per cent increase in the quarterly dividend, becoming the fifth increase in the past 18 months.

This represents a cumulative 75 % rise in the dividend since the first increase in October 2019, a development which the board attributed to the continued confidence in the outlook of the business.

"As we reach the end of the six-year investment program at Blanket Mine, the anticipated combination of rising production and declining capital investment gives us confidence to further increase the dividend payment," Curtis added.

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