Gold mining major Newmont has declared a quarterly dividend of $0.25 a share of common stock, in line with its January announcement that it would boost its dividend to about $1 a share annually.
The hike represented a significant increase to its “industry leading dividend”, Newmont said in a statement on Tuesday.
The dividend would be paid to holders of record at the close of business on June 4.
Newmont, the world's largest gold mining company, cautioned that future quarterly dividends would depend on the company's financial results, cash flow and cash requirements, and the duration and impact of the Covid-19 pandemic.
Four of the group’s Canadian and South American gold mines have been shut to curb the spread of the new coronavirus. The miner in March wound down operations at Yanacocha, in Peru, Cerro Negro, in Argentina, Musselwhite in northern Ontario and Eleonore, in Quebec.
CEO Tom Palmer told newswire Reuters earlier this week that the group would restart some of those operations in “as soon as days”.
The closure of mines to combat Covid-19 resulted in Newmont withdrawing its guidance of 6.4-million ounces of gold at an all-in sustaining cost of $975/oz.