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Newmont hikes quarterly dividend 38%

17th February 2021

By: Creamer Media Reporter

     

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Bullion major Newmont has declared a fourth quarterly dividend of $0.55 a share, representing an increase of 38% compared with the prior quarterly dividend of $0.40 a share.

“[We] continue delivering industry-leading returns through the highest dividend in the gold sector at an annualized payout of $2.20 per share and a dividend yield of over 3.5%,” said president and CEO Tom Palmer.

Newmont’s dividend increase is supported by a framework to return 40% to 60% of incremental attributable free cash flow to shareholders that is generated above a $1 200/oz gold price.

For the fourth quarter, the dividend increase was based on a $1 800/oz gold price assumption and a 40% payout ratio applied to our previously articulated $1.2-billion incremental free cash flow for every $300/oz change in the gold price.

Newmont’s base annualised dividend remains at $1.00 a share and is sustainable at a $1 200/oz.

Newmont returned over $2.7-billion to shareholders through dividends and share buybacks in 2019 and 2020.

Edited by Creamer Media Reporter

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