>Newmont plans to link dividend to gold prices
The annual payout will rise at a rate of 20 cents per share for each $100 per ounce increase in the average realized gold price.
(Reuters) – Newmont Mining Corp (NEM.N), the world’s second-largest gold producer, plans to link its quarterly dividend to the price of gold it realizes for the preceding quarter.
The annual payout will rise at a rate of 20 cents per share for each $100 per ounce increase in the average realized gold price. The current gold price of about $1,450 an ounce will mean Newmont’s annual dividend would be $1.00.
“With our strong balance sheet and cash flow, we are positioned to fund profitable growth and to pay a new gold price-linked dividend,” Chief Executive Richard O’Brien said in a regulatory filing before its investor day.
The first quarterly dividend under this policy is expected to be payable on June 29. The company paid a quarterly dividend of 15 cents per share on March 30.
Newmont continues to see 2011 attributable gold production of 5.1-5.3 million ounces.
Newmont shares closed at $56.45 on Wednesday on the New York Stock Exchange.
(Reporting by Krishna N Das in Bangalore; Editing by Maju Samuel)
Newmont plans to link dividend to gold prices | Reuters