Caledonia reported 16,876 ounces of gold production in Q4, 24% higher than the preceding quarter. Total annual production of 55,182oz exceeded the company's guidance range of 50,000 - 53,000oz.

"An improvement in the electricity supply and vigilant focus on grade control and production tonnage have resulted in an excellent production result for the final quarter of which our entire operational staff can be justifiably proud," Caledonia's chief executive officer Steve Curtis said in a statement.

Curtis said the strong operational momentum built by the company late 2019 had continued into the new year.

The company expects to complete work on a new central shaft at Blanket in July, which should boost production from about 55,000 ounces a year in 2020 to 75,000oz in 2021 and 80,000oz in 2022.

Caledonia announced a 9.1% dividend increase on January 3, and Curtis said Monday "the anticipated improvement in free cash flow is expected to enable the board to review future dividend distributions as appropriate".