Business Wire 16-Feb-2017 7:43 PM
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 March 23, 2017, to holders of record at the close of business on March 9, 2017.
This is the first dividend payable under the Companys enhanced gold price-linked dividend policy which was approved in the fourth quarter of 2016 and came into effect in the first quarter of 2017. The dividend of $0.05 per share is double the dividend paid in the prior year quarter.
Newmont's 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 $1,200 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.
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, 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 Newmonts 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