TORONTO – Barrick Gold Corp. announced Oct. 31 that Barrick and Randgold Resources Ltd. agreed to increase dividends to shareholders.
Randgold shareholders will be entitled to receive a dividend of $2.69 per share for the 2018 financial year, instead of the originally agreed Randgold dividend of $2.00 per share.
Barrick shareholders will be entitled to receive a fourth quarter dividend of $0.07 per share (for an annualized 2018 dividend of $0.16 per share), instead of the originally agreed Barrick fourth quarter dividend of $0.05 per share. Barrick will target an ongoing annual dividend of $0.16 per share, representing an increase of $0.04 per share from the company’s current annual dividend of $0.12 per share.
The originally disclosed Randgold dividend was set at $2.00 per share, which was based on Randgold’s dividend for 2017, and was equal to the largest per share dividend that had been paid by Randgold to date. Based on Randgold’s dividend policy and its financial performance in 2018 to date, Randgold has determined that a dividend of $2.69 per share for 2018 would be consistent with that dividend policy. This increase is expected to amount to approximately $65 million in aggregate.
The increased Randgold dividend is expected to be declared and paid prior to the closing of the merger.
Based on the strong fundamentals of Barrick at present and following completion of the merger, including stronger cash flow generation, additional overhead cost savings, potential asset sale proceeds, and lower interest costs, Barrick will target an annualized dividend of $0.16 per share.
A dividend of $0.07 per share is expected to be declared in December 2018 for payment in early 2019 to shareholders of Barrick prior to the completion of the merger.