The Victoria Falls Exchange (VFEX)-listed mining concern Caledonia Mining has declared a quarterly dividend of US14 cents.

Last year, the gold producer paid out a total dividend of US56c for the year, 12% more than 2021.

Caledonia hit record gold production of 80,775 ounces in 2022 and expects 87,500-97,000oz this year.

The company’s Chief Executive Officer Mark Learmonth announced the development:

“Caledonia declares quarterly dividend of $0.14 a share. The quarterly dividend, continues to be an important part of the Company’s strategy & we believe sets us apart from our peer group.”

Apparently, Caledonia receives remittances from Blanket in the form of payments for goods and services procured by Caledonia on behalf of Blanket; a management fee payable by Blanket to Caledonia.

As well as payments of dividends from Blanket to Caledonia and the repayment of facilitation loans which were extended by Caledonia to the Indigenous Zimbabweans who acquired shareholdings in Blanket.

On January 28, 2014 Caledonia announced that as a result of new regulations introduced by the Zimbabwe Ministry of Finance, all gold produced in Zimbabwe must now be sold to Fidelity Printers and Refiners Limited (“Fidelity”).

This is a company which is controlled by the Zimbabwean authorities and which is now responsible for the final refining and marketing of all gold produced in Zimbabwe.

Accordingly, all of Blanket’s production has subsequently been sold to Fidelity. Blanket receives 98.5% of the value of the gold within a maximum of 7 days of a sale to Fidelity.

Blanket has received all payments due from Fidelity under these new arrangements in-full and on-time.

Gold is one of the country’s major foreign currency earners, however the mineral has been subject to smuggling.