Owing to the uncertain business environment associated with the Covid-19 pandemic, dual-listed Caledonia Mining has deferred its approval of the declaration of the second quarterly dividend for this year.
The board will keep this decision under constant review as it monitors prevailing market conditions.
Caledonia has paid a quarterly dividend since 2014.
Provided the measures taken by the Zimbabwe and South African governments do not result in severe or prolonged interruptions to operations, the effect of such measures should not impede the company's ability to resume the payment of quarterly dividends, the company says.
“The Covid-19 pandemic has elevated global levels of uncertainty. I have full confidence that 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, the Blanket mine 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 supplies of consumables and other items,” comments Caledonia chairperson Leigh Wilson.
Production at the company's Blanket mine, in Zimbabwe, continues, although at a lower rate than targeted owing to the introduction of measures to reduce the risk of infections being transmitted among its employees.
The mine also has sufficient consumables and spare parts in its inventory to sustain uninterrupted gold production well past the end of the current lockdowns in Zimbabwe and South Africa.