Newmont increases quarterly dividend by 60% to $0.40 a share

29th October 2020 By: Creamer Media Reporter

NYSE- and TSX-listed Newmont Corporation has declared a quarterly dividend of $0.40 a share for the third quarter.

The dividend, payable on December 28, represents a 60% increase compared with the prior quarterly dividend of $0.25 a share.

For the third quarter, the Newmont board approved a 60% increase in our quarterly dividend – which equates to a $0.60 a share annualised increase.

The 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. 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/oz gold price assumption and a 40% payout rate 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 a share and is sustainable at a $1 200/oz gold price.

“We are pleased to announce an increase to our annualised dividend of 60% to $1.60 a share, driven by our strong performance and confidence in our world-class portfolio to generate value.

“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,” says Newmont president and CEO Tom Palmer.