Newmont Increases Quarterly Dividend by 60 Percent to $0.40 Per Share
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced that its Board of Directors declared a quarterly dividend of $0.40 per share of common stock, payable on December 28, 2020 to holders of record at the close of business on December 11, 2020. The third quarter dividend represents an increase of 60 percent compared to the prior quarterly dividend of $0.25 per share.
Newmont’s dividend is the highest in the gold sector and demonstrates the Company’s commitment to providing shareholders with industry-leading returns. Newmont’s capital allocation philosophy remains unchanged and balances steady reinvestment in the business, maintaining financial strength and flexibility, and providing leading returns to shareholders.
For the third quarter, the Board of Directors approved a 60 percent increase in our quarterly dividend – which equates to a $0.60 per share annualized increase. This dividend increase is supported by a framework to return 40 to 60 percent of incremental attributable free cash flow to shareholders that is generated above a $1,200 per ounce 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 per ounce gold price assumption and a 40 percent payout rate applied to our previously articulated $1.2 billion incremental free cash flow for every $300 per ounce change in the gold price. Newmont’s base annualized dividend remains at $1.00 per share and is sustainable at a $1,200 per ounce gold price.
“We are pleased to announce an increase to our annualized dividend of 60 percent to $1.60 per share driven by our strong performance and confidence in our world-class portfolio to generate value,” said Tom Palmer, President and Chief Executive Officer. “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.”