Yamana Gold Increases Annual Dividend by Nearly 15% to $0.12 Per Share and Announces Normal Course Issuer Bid; Latest Dividend Increase Represents a Cumulative Increase of 500% in Annual Dividend Since the Second Quarter of 2019
TORONTO, July 29, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (“Yamana” or the “Company”) (TSX:YRI; NYSE:AUY; LSE:AUY) announces that it has increased its annual dividend by nearly 15% to $0.12 per
Shareholders of record at the close of business on September 30, 2021, will be eligible to receive payment of an increased dividend of $0.03 per share on October 14, 2021. The dividend is an “eligible dividend” for Canadian tax purposes.
This is the Company’s sixth dividend increase since the second quarter of 2019 representing a cumulative increase of 500%.
Yamana considers dividends an important component of returns on investment for shareholders, and has previously indicated that its policy is that as its cash flows and cash balances increase, as its balance sheet continues to improve, and as debt service decreases, the Company would evaluate further increases of its dividend. The most recent dividend increase reflects improved cash flows and increased cash balances, along with other realized and anticipated balance sheet and financial improvements. While the Company has relied over the last several years on maintaining certain levels of cash on hand to secure payment of the dividend independently of changes in gold prices, with improvements in cash flows and certainty of modest, manageable annual capital expenses for its growth projects, with the completion of various definitive studies relating to those growth projects, the Company has concluded that it is able to fund its dividend at current or substantially lower gold prices. The Company conducts sensitivities on its capital allocations, including ability to fund and pay dividends, at various gold prices as low as $1,350 per ounce.
Since late 2006, when the Company first began paying dividends, it has paid more than $1 billion in dividends, which compares very favourably to senior level peers.
Normal Course Issuer Bid
Concurrently, the Company also today announced that it will make a normal-course issuer bid (“NCIB”) to purchase up to 48,321,676 common shares of the Company representing up to 5% of the Company’s current issued and outstanding common shares, in open market transactions through the facilities of the Toronto Stock Exchange (“TSX”), the New York Stock Exchange (the “NYSE”) and alternative Canadian trading systems, subject to TSX approval. The Company will be permitted to make purchases under the NCIB over a period of twelve months commencing on August 4, 2021, and expiring no later than August 3, 2022.