DENVER — Newmont Corp. has announced a plan to significantly increase its quarterly dividend by 79 percent to 25 cents per share, or an expected $1 per share annually.
Monday’s announcement was preceded by a release stating the company had refreshed its brand, name and logo “to reflect its strong and stable foundation following two historic transactions in 2019.”
“We successfully completed two historic transactions in 2019, which have transformed Newmont into a truly international organization with an unmatched portfolio of assets and prospects in top-tier jurisdictions around the world,” said Tom Palmer, president and chief executive officer.
“As this company has done many times in the past, Newmont has demonstrated its ability to adapt to change, which is truly a hallmark of our success over the last 100 years.”
The company had been called Newmont Goldcorp Corp. after its merger with Goldcorp early last year. The company also launched a joint venture with Barrick Gold Corp. in 2019, holding one-third interest in Nevada Gold Mines.
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Palmer said updating the company’s brand “represents a natural step as we approach the next 100 years in Newmont’s long and proud legacy of operating discipline, profitable growth, environmental stewardship, and developing the industry’s best talent.”
The increased dividend will become effective upon approval and declaration of the first quarter dividend in April 2020. In addition, the Company plans to continue to execute on its recently announced stock repurchase program for up to $1 billion of common equity.
For the quarter ended December 31, 2019, the Company has utilized the repurchase program to retire 12.4 million shares totaling $506 million.
Altogether, Newmont returned approximately $1.4 billion to shareholders in 2019.
“We are pleased to announce a planned increase to our annualized dividend by 79 percent to one dollar per share and will continue demonstrating our disciplined approach to capital allocation and the confidence we have in our business to deliver substantial future cash flows and returns for shareholders,” said Palmer. “Our first quarter dividend will offer investors a highly competitive dividend yield and enhanced returns from owning shares of the world’s leading gold company.”
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 requirements, future prospects and other factors deemed relevant by the Board.