Caledonia issues new director incentive plan
CALEDONIA Mining Corporation, which owns Blanket Gold Mine in Matabeleland South, has issued new long-term incentive plan awards to three of its directors.
A long-term incentive plan is a company policy that rewards employees for reaching specific goals that lead to increased shareholder value.
The initial long-term incentive awards were in 2016 granted to Blanket Mine’s general manager and director Mr Caxton Mangezi together with Caledonia’s chief executive officer Mr Steve Curtis, the conglomerate’s chief financial officer Mr Mark Learmonth and chief operating officer Mr Dana Roets.
The awards were provided for in terms of the company’s Omnibus Equity Incentive Compensation Plan introduced in 2015.
“Caledonia announces that it has made new long-term incentive plan awards under the company’s 2015 Omnibus Equity Incentive Compensation Plan,” said the mining group in a statement.
Caledonia said the latest long-term incentive plan awards have been issued to Mr Curtis with a grant value of US$476 486, Mr Learmonth (US$444 945) and Mr Roets (US$200 340).
“The awards are in the form of performance units (PUs) as defined in the plan.
“The vesting date for the PUs shall be January 11, 2025,” it said.
“The number of PUs awarded is equal to the monetary value of the award divided by the “fair market value” (as defined in the plan) of the company’s shares, being, in this case,
the greater of (i) the closing price of Caledonia’s shares on the New York Stock Exchange (NYSE) American on the trading day preceding the date of the award or (ii) the volumeweighted average closing price of Caledonia’s shares on the NYSE American for the five days preceding the date of the award, which resulted in a price of US$12,01.”
The final number of PUs which vest on maturity of the awards will be adjusted to reflect the actual performance of the company in terms of various operating metrics, subject to certain minimum and maximum thresholds.
Each PU that vests entitles the participant to receive one Caledonia common share (or a security representing a share) on the maturity of the award.
“Shares that are issued pursuant to vesting PUs are subject to a minimum holding period of one year in case vested awards become subject to forfeiture, reduction or cancellation,” said Caledonia.
Blanket Mine last year exceeded its revised increased production guidance of between 65 000 ounces and 67 000oz to reach 67 476oz.
The latest annualised record gold production figures are 17 percent above the 2020 figures.
Production for the fourth quarter ended December 31, 2021 stood at 18 604oz reflecting a 24 percent increase on the 15 012 oz achieved in the corresponding period in 2020.
Caledonia predicts that gold production this year would be between 73 000oz and 80 000oz on theback of the recently installed Central Shaft as well as other areas of the mine’s growth strategy.-The Herald
