Newmont Increases Quarterly Dividend by 60 Percent to $0.40 Per Share
October 28 2020 - 5:17PM
Business Wire
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the
Company) today announced that its Board of Directors declared a
quarterly dividend of $0.40 per share of common stock, payable on
December 28, 2020 to holders of record at the close of business on
December 11, 2020. The third quarter dividend represents an
increase of 60 percent compared to the prior quarterly dividend of
$0.25 per share.
Newmont’s dividend is the highest in the gold sector and
demonstrates the Company’s commitment to providing shareholders
with industry-leading returns. Newmont’s capital allocation
philosophy remains unchanged and balances steady reinvestment in
the business, maintaining financial strength and flexibility, and
providing leading returns to shareholders.
For the third quarter, the Board of Directors approved a 60
percent increase in our quarterly dividend – which equates to a
$0.60 per share annualized increase. This dividend increase is
supported by a framework to return 40 to 60 percent of incremental
attributable free cash flow to shareholders that is generated above
a $1,200 per ounce gold price. Newmont's dividend framework shares
incremental free cash flow with shareholders at higher gold prices.
In this instance, the dividend increase was based on a $1,500 per
ounce gold price assumption and a 40 percent payout rate applied to
our previously articulated $1.2 billion incremental free cash flow
for every $300 per ounce change in the gold price. Newmont’s base
annualized dividend remains at $1.00 per share and is sustainable
at a $1,200 per ounce gold price.
“We are pleased to announce an increase to our annualized
dividend of 60 percent to $1.60 per share driven by our strong
performance and confidence in our world-class portfolio to generate
value,” said Tom Palmer, President and Chief Executive Officer.
“This is the second increase to our dividend in 2020 and reflects
the strength of Newmont’s portfolio to pay a higher dividend while
we continue to advance profitable projects and maintain financial
strength and flexibility. Our dividend framework provides
shareholders with a sustainable base dividend and the ability to
directly benefit from Newmont’s significant free cash flow
generation at higher gold prices.”
Newmont has the strongest and most sustainable portfolio of
operations, projects and exploration prospects in the gold sector.
Newmont’s world-class portfolio has returned more than $2.2 billion
to shareholders through dividends and share buybacks since January
2019.
The declaration and payment of future quarterly dividends
remains at the discretion of the Board of Directors and will depend
on the Company's financial results, cash flow and cash
requirements, future prospects, and other factors deemed relevant
by the Board.1
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
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. Forward-looking statements
often contain words such as “expect,” “intend,” “plan,” and “will.”
Such forward-looking statements may include, without limitation,
statements or expectations regarding future performance, business
results, cash flow, capital allocation, project development
financial flexibility and dividend payments. Investors are
cautioned that the Company’s dividend framework is non-binding.
Future dividends are assessed on a quarterly basis by the Board of
Directors and will be determined based on Newmont’s financial
results, balance sheet strength, cash and liquidity requirements,
future prospects, gold price fluctuations and other factors deemed
relevant by the Board. Other than the dividend announced above,
dividends for the remainder of 2020 have not yet been approved or
declared by the Board of Directors. An annualized dividend has not
been declared by the Board, and the annualized dividend level
implied by the third quarter dividend increase is non-binding.
Management’s expectations with respect to future dividends are
“forward-looking statements” and non-binding. 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 dividend plans at any
time without prior notice. Investors are reminded that
forward-looking statements are subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed, including, without limitation, risks in
connection with the operations, cash flow and results of the
Company relating to the uncertain duration, scope and effect of the
current COVID-19. Uncertainties relating to COVID-19, include,
without limitation, general macroeconomic uncertainty and changing
market conditions, changing restrictions on the mining industry in
certain the jurisdictions in which we operate, the ability to
operate following changing governmental restrictions on travel and
business operations (including, without limitation, the duration of
restrictions, including access to sites, ability to transport and
ship doré, access to processing and refinery facilities, impacts to
international trade, impacts to supply chain, including price,
availability of goods, ability to receive supplies and fuel,
impacts to productivity and operations in connection with decisions
intended to protect the health and safety of the workforce, their
families and neighboring communities). In light of the changing
environment and uncertainties, no guarantees can be provided that
Newmont’s proactive efforts to minimize impacts will be effective
in eliminating risks. Similarly, no guarantees can be made that the
Company will be able to maintain the same dividend level in the
future. Investors should not place undue reliance on
forward-looking statements.
1 See cautionary statement at the end of this release for
additional information. Investors are cautioned that the Company’s
dividend framework and the annualized dividend level assumed based
upon the third quarter dividend increase are non-binding.
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version on businesswire.com: https://www.businesswire.com/news/home/20201028006219/en/
Media Contact Courtney Boone
303.837.5159 courtney.boone@newmont.com
Investor Contact Eric Colby
303.837.5724 eric.colby@newmont.com
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