CMCL management cancels April dividend. Another totally unnecessary, anti shareholder action by the greedy, self serving, way overpaid CMCL management. The April divided is easily affordable. CMCL shareholders depend on the quarterly dividends as a source of income. If the virus restrictions continue, the July dividend could have been cancelled if necessary. Notice that Curtis, Roets & Learmonth have voted themselves total yearly compensation, bloated salaries & options, of about $500 thousand each. However, these greedy bozos didn't offer to reduce their salaries & cancel their options until the dividend is restored.That would have been in the best interest of all CMCL shareholders.............
Caledonia Mining Corporation Plc: Deferral of April 2020 dividend decision
Today : Thursday 2 April 2020
Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) (NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL) announces that due to the uncertain business environment associated with the COVID-19 Pandemic, the board of directors has decided to defer its approval of the declaration of the second quarterly dividend of 2020. The board will keep this decision under constant review as it monitors prevailing market conditions.
Production at Blanket continues, although at a lower rate than targeted due to the introduction of measures to reduce the risk of infections being transmitted amongst its employees. Blanket also has 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.
Caledonia has paid a quarterly dividend since 2014 and the payments are an important element of the Company’s strategy to create and enhance shareholder value. Provided the measures taken by the Zimbabwe and South African governments do not result in severe and/or prolonged interruptions to operations, the effect of such measures should not impede the Company’s ability to resume the payment of quarterly dividends.
Caledonia’s cash position on March 26 was $12.5 million. At the current quarterly dividend rate of 7.5 cents per share, the dividend payment that was scheduled for payment in April amounts to approximately $860,000, less than seven per cent of Caledonia’s currently available cash.
Leigh Wilson, Chairman, commented:
“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, Blanket 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 its supplies of consumables and other items.
“Our balance sheet remains in an enviable position and the dividend remains comfortably affordable. 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.”
