U.K.-based Caledonia Mining Corp. PLC declared a quarterly dividend of 7.5 U.S. cents, rising 9.1% from the previous dividend of 6.875 cents.

The dividend is payable to shareholders of record as of Jan. 17, with the dividend check mailing date set for Jan. 31.

The company said Jan. 3 that the dividend hike was prompted by its improved financial performance on the back of increased production and high gold prices.

In the third quarter of 2019, Caledonia Mining's net profit surged 215.1% year over year to US$7.0 million as revenue jumped to US$20.0 million from US$16.6 million.

Gold production dropped 2.4% year over year to 13,646 ounces but improved 7.3% compared to the previous quarter.

Caledonia Mining also noted its flexibility to distribute some of its cash reserves as it concludes a five-year investment program at its 49%-owned Blanket gold mine in Zimbabwe.

The company said its capital expenditure rate will start to decrease in the middle of the year as the mine's central shaft is set to be commissioned in the fourth quarter.

With the new shaft, Caledonia Mining anticipates further increases in operating cash flow as gold production climbs to the target rate of 80,000 ounces per annum starting in 2022 from the current guidance of between 50,000 and 53,000 ounces.