Canadian Mining Journal


GOLD: Newmont Goldcorp ups dividend by 79%

Underground at Newmont Goldcorp’s Éléonore gold mine in Quebec. Credit: Newmont Goldcorp

Underground at Newmont Goldcorp’s Éléonore gold mine in Quebec.
Credit: Newmont Goldcorp

DENVER – In line with its commitment to return cash to shareholders, Newmont Goldcorp has announced a hefty 79% increase to its dividend to US$1.00 annually, effective upon approval in April.

Alongside this increase, in December, the company announced plans to repurchase up to $1 billion of stock and by the end of the fourth quarter, it had repurchased US$506 million of its shares. Last year, Newmont returned a total of US$1.4 billion to its shareholders.

“We are pleased to announce a planned increase to our annualized dividend by 79 precent 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,” Tom Palmer, the company’s president and CEO said in a release.

In addition, last week, Newmont Goldcorp completed the sale of its 50% stake in Kalgoorlie Consolidated Gold Mines to Australia’s Northern Star Resources for cash proceeds of US$800 million. In combination with its prior agreements to sell Red Lake assets for US$375 million and its Continental Gold holding for US$260 million, the company expects to receive US$1.4 billion in cash proceeds in the first quarter.

Updated five year guidance following the latest divestiture stands at:

  • Expected production of 6.4 million oz. of gold this year and 6.2 million oz. to 6.7 million oz. through 2024.
  • All-in sustaining costs are unchanged at US$975 per oz. forecast for 2020, US$850 to US$950 per oz. in 2021 and 2022, dropping to US$800 to US$900 per oz. in 2023 and 2024.
  • Development capital spend guidance stands at US$625 million for this year, and is expected to decrease through the next five years to the sub-US$100 million range by 2024.

The company’s latest production guidance for 2019 was at 6.3 million oz. of gold with AISCs of US$965 per oz. and US$550 million in spending on development capital, updated for the formation of the Nevada Gold Mines unit effective Jul. 1, 2019.

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