Newmont Announces 50% Increase to Regular Quarterly Dividend to $0.30 Per Share
DENVER, July 27, 2011 /PRNewswire via COMTEX/ --
Newmont Mining Corporation (NYSE: NEM) announced today that its Board of Directors declared a regular quarterly dividend of $0.30 per share of common stock, an increase of 50% over the $0.20 dividend paid in the second quarter 2011, and an increase of 100% over the third quarter 2010 dividend. The third quarter 2011 dividend of $0.30 per share is payable on September 29, 2011, to holders of record at the close of business on September 8, 2011.
The third quarter 2011 dividend of $0.30 per share was declared in consideration of Newmont's second quarter 2011 average realized gold sales price of $1,501 an ounce (i.e. between $1,500 - $1,599 per ounce). Under the Company's recently announced gold price-linked dividend guideline, it is contemplated that each quarterly dividend will be determined as a function of Newmont's average realized gold sales price for the preceding quarter. The Company's quarterly dividend will increase at a rate of $0.05 per share for each $100 per ounce rise in the average realized gold sales price for the preceding quarter.
In addition, Newmont Mining Corporation of Canada Limited (TSX: NMC) today declared a regular quarterly dividend of CAD $0.2842 per share on its exchangeable shares, payable September 29, 2011 to holders of record at the close of business on September 8, 2011. This dividend is designated as an "eligible dividend" for Canadian tax purposes.
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, statement relating to future dividend payments or gold prices. Investors are cautioned that the new gold price-linked dividend guidelines are 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, 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 guidelines.
SOURCE Newmont Mining Corporation