DENVER--(BUSINESS WIRE)--
Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
announced its Board of Directors declared a quarterly dividend of $0.05
per share of common stock, payable on December 29, 2016, to holders of
record at the close of business on December 8, 2016.
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Newmont Mining updated quarterly dividend policy (Graphic: Business Wire)
Newmont’s Board also approved an enhanced gold price-linked dividend
adjusting the annual payout levels, starting in the first quarter 2017,
to provide additional upside to shareholders as gold prices increase.
“Our dividend doubled during the quarter and we’re pleased to offer our
shareholders even higher exposure to rising gold prices through our
enhanced dividend policy.” said Gary Goldberg, President and Chief
Executive Officer. “We’re also confident in our ability to generate free
cash flow at reduced prices, and have raised our payout at lower levels
as well. This new policy has the potential to increase dividend payout
levels by more than 100 percent beginning in the first quarter of 2017,
in keeping with our strategy to create shareholder value.”
Newmont's updated gold price-linked dividend policy includes a quarterly
payable dividend based on the average LBMA P.M. Gold Price for the
preceding quarter. The policy includes a minimum $0.10 per share ($0.025
per quarter) payout at gold prices below $1,150 per ounce. The dividend
increases to $0.15 per share ($0.0375 per quarter) at gold prices of
$1,150 per ounce. At $1,200, the dividend increases to $0.20 per share
($0.05 per quarter). For each $50 increase above $1200 per ounce the
dividend increases by a further $0.10 per share ($0.025 per quarter). At
$1,400, $1,500 and $1,600 per ounce, the dividend increases to $0.60,
$0.85 and $1.10 per share ($0.15, $0.2125 and $0.275 per quarter),
respectively.
The declaration and payment of dividends remains at the discretion of
the Board of Directors and will depend on the Company's financial
results, cash requirements, future prospects and other factors deemed
relevant by the Board.
Cautionary Statement:
This release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbor created by such sections and other
applicable laws. Such forward-looking statements may include including,
without limitation, statements relating to future dividend
payments,future gold prices, future ability to generate free cash flow
at reduced prices, and future shareholder value and returns. Investors
are cautioned that the gold price linked dividend policy is non-binding.
The declaration and payment of future dividends remain at the discretion
of the Board of Directors and will be determined based on Newmont’s
financial results, balance sheet strength, cash and liquidity
requirements, future prospects and other factors deemed relevant by the
Board. The Board of Directors reserves all powers related to the
declaration and payment of dividends. Consequently, in determining the
dividend to be declared and paid on the common stock of the Company, the
Board of Directors may revise or terminate such policy at any time
without prior notice. As a result, investors should not place undue
reliance on such policy or guidelines.
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Source: Newmont Mining Corporation