Victoria Falls Stock Exchange (VFEX) listed gold mining giant Caledonia Mining Corporation Plc announced its third-quarter gold production results from its Blanket Mine in Zimbabwe, showing a slight decline from last year’s record-breaking quarter.
For the quarter ended September 30, 2024, Caledonia produced 18,992 ounces of gold, compared to 21,772 ounces in the same period last year. However, the company’s year-to-date gold production reached 56,815 ounces, surpassing the 55,244 ounces produced in the same period in 2023.
Caledonia reiterated its gold production guidance for 2024, expecting to produce between 74,000 and 78,000 ounces.
In a related development, Caledonia adjusted its dividend declaration schedule to align with quarterly results publication, starting with the Q3 2024 dividend declaration in mid-November.
The change, according to the company, does not affect the company’s dividend policy, and the board will continue to consider dividends in line with other investment opportunities and risk management.
“As previously announced, in the Company’s last quarterly results, to streamline board processes, future dividends are expected to be declared at the same time as the publication of quarterly results (i.e. mid-March, May, August, and November).
“This will mean that the Q3 2024 dividend, if approved by the board, will be declared in mid-November rather than at the start of October,” the company stated in a notice on Tuesday.
“This change relates only to the timing of future dividends and does not denote any change in the Company’s dividend policy.
“The board will continue to consider the dividend as appropriate in line with other investment opportunities and its prudent approach to risk management.”
In the broader Zimbabwe gold mining sector, Fidelity Gold Refinery, a major gold buyer, operates 17 strategically located gold buying centres across the country’s gold mining provinces.
According to Fidelity’s general manager Peter Magaramombe, the sector is experiencing momentum, driven by supportive policies, favourable prices, and enhanced regulatory frameworks.
Magaramombe projected 35 tonnes of gold delivery to Fidelity by December 31, 2024, citing optimism for 2025 due to geopolitical shocks, interest rate cuts by the Federal Reserve, and continued gold purchases by emerging market central banks.
“We project 35 tonnes of gold to be delivered to Fidelity as of December 31, 2024. This projection is conservative, considering the sector’s current momentum and potential several factors underpin our optimism, including the continued implementation of supportive policies, favourable prices and enhanced regulatory frameworks,” Magaramombe told delegates during the just-ended Mine Entra 2024 in Bulawayo.
“The year 2025 is promising a positive outlook. The positive trend is driven by factors inherited from the current year 2024 (geopolitical shocks) as well as interest rate cuts by the Federal Reserve and continued gold purchases by emerging market central banks.”
Caledonia’s shares are listed on the NYSE American, AIM, and VFEX under the ticker symbol CMCL.
