Caledonia Mining – A Golden Opportunity?
Marten and Co publishes its first initiation of coverage note on Caledonia Mining
Caledonia Mining (CMCL) is a gold mining company that produced 43,000 ounces (43koz) of gold from its mine in Zimbabwe in 2015 and is investing a total of over US$50m from cash flow, with the aim of almost doubling production by 2021.
Caledonia Mining – A Golden Opportunity?
The company is a profitable gold producer that has been paying a quarterly dividend since the beginning of 2014. It has just increased its quarterly dividend by 22%, to an annualised US5.5c per share and, based on the current share price, the projected annual dividend yield for 2016 equates to 4.8%.
About Caledonia Mining
Caledonia is a gold mining company with an operating mine in the southern region of Zimbabwe. The company’s shares trade on the Toronto Stock Exchange (TSX) with the symbol CAL and on London’s AIM with the symbol CMCL. The company is registered in Jersey, having moved its domicile from Canada in Q1 16 to simplify the group structure and to reduce travel and compliance costs. The company acquired the Blanket mine from Kinross Gold in 2006. In 2012, it sold a 51% interest in the mine to various local parties to comply with indigenisation law (designed to increase the participation of Black Zimbabweans in the local economy). Caledonia is able to participate in Blanket mine’s cash flow at the much higher level of 77%, however, because of the way the indigenisation deal was facilitated.
Company’s website; click here
CMCL : Caledonia Mining – A Golden Opportunity?