Caledonia Mining Corporation (AIM:CMCL ) has declared a quarterly dividend of $0.075 per share after having deferred the payment at the start of April in light of the Covid-19 pandemic.
The AIM-listed mining firm told investors, however, that it has since been encouraged by continued operations at its Blanket mine and the re-opening of important supply lines.
It said Blanket’s supply chain of consumables and spare parts is now ‘close to normal’ and that it had restarted full production after operating at 93% capacity Zimbabwe’s lockdown.
The group reported a “healthy” balance sheet with $14.1m cash at April 24 2020 which it said gives the Directors confidence ‘in the solvency and resilience’ of the business at this time.
"Our balance sheet remains in an enviable position and the dividend remains comfortably affordable,” said Leigh Wilson, Chairman of Caledonia.
Shares in Caledonia were 0.52% higher at 973p during Wednesday morning trading.
Meanwhile, Caledonia has committed to making weekly donations to coronavirus-related projects in Zimbabwe to combat the spread of the disease.
"Our ability to make this dividend payment whilst at the same time making larger contributions to the fight against COVID-19 is testament to the resilience of our business,” said Wilson.
He added, “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."
Caledonia expects to publish its results for the quarter to March 31, 2020 on or around May 14, 2020.
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