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Yamana Gold announces another dividend increase

24th July 2020

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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TSX-listed precious metals miner Yamana Gold is increasing its yearly dividend by a further 12% to $0.07.

This is the fourth dividend increase in the past year and represents a cumulative increase of 250%.

The miner’s assets comprise gold and silver production, development-stage properties, exploration properties and land positions in Canada, Brazil, Chile and Argentina.

Yamana reports that it will continue to take a gradual and progressive approach to dividend increases as its cash balances continue to grow from increasing cash flows and successful initiatives to monetise its portfolio of nonproducing assets and financial instruments.

At the new annual dividend rate, the dividend paid will be above $70 per gold-equivalent ounce (GEO), in line with the company's target of between $50/GEO and $100/GEO.

The company considers dividends an important component of returns on investment for shareholders.

Since late 2006, when Yamana first began paying dividends, it has paid in excess of $940-million in dividends, which compares favourably to senior-level peers.

Further, the company believes dividends impose a discipline on management in relation to a company’s financial resources and capital allocation.

With current levels of cash flows and cash balances, Yamana has sufficient financial flexibility to invest in its business, including its organic growth opportunities, while maintaining its dividend at the new level.

As cash flows and cash balances increase, the company will consider further increases in its dividend.

Yamana on July 20 announced that it plans to list on the LSE in the coming months to widen its shareholder base to include European investors.

It has set its sights on becoming the “investment of choice” in London for those looking for exposure to gold.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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