Toronto Stock Exchange-listed gold producer Caledonia Mining Corporation, which owns the Blanket Gold Mine in Zimbabwe, has increased its quarterly dividend to US$0.12 from US$0.11 previously.

The gold producer has been boosting gold output in recent quarters, and expects positive outcomes going forward after it announced that the Central Shaft Blanket Gold Mine in Gwanda is now operational.

Caledonia has poured US$67 million using internal cashflow initiatives into Blanket Mine’s five-year Central Shaft sinking project.

Said CEO Steve Curtis:

“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.

“Commissioning the Central Shaft has been the culmination of a six-year project costing approximately US$67 million, 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.”

For the 2020 financial year, the Blanket Gold Mine produced 57 899 ounces, a new record for annual production.

The strong operating performance was supported by a rising gold price and gross profit for the year under review was $46,6 million, almost 50 percent higher than 2019.

It is expected that the Central Shaft will further boost production. According to management, the guidance for 2021 is a range of 61 000 to 67 000 oz while from 2022 onwards it is 80 000oz, 38 percent higher than in 2020.