Newmont Corporation, the biggest gold miner in the world by production volume, has declared the highest quarter 4 dividend in the industry, retaining its top spot as the mining firm with the largest dividend yield.
The miner’s board recently announced that it would be paying a dividend of 55c per common share on March 24, 2022, to shareholders who owned stock by the close of business on March 10. Newmont plans to release the results for the fourth quarter and the entire financial year of 2021 on Feb. 24, 2022. The gold miner, which also produces silver, zinc, copper and lead, had a great year in 2021. Projections based on 2021 third-quarter cash flows show that the miner was set to pay a whopping $1.7 billion to its shareholders as dividends.
The Denver, Colorado-based miner uses a top-of-the-line dividend framework that pays $1 per share of dividends at $1,100 per ounce of gold. It also pays a declared incremental payment every quarter, at 40% to 60% of the total attributable free cash flow that was reverted back to shareholders.
According to Newmont, it uses gold price fluctuations for every ounce to evaluate its dividend returns. This means that annual payouts could reach $2.75 to $3.80 per share if gold trades at $2,100. Shareholders could also see their take-home increase, thanks to Newmont’s share repurchase of $1 billion. By the end of September last year, the company had repurchased more than $400 million worth of shares.
Gold shareholders can expect their dividends to go even higher thanks to increasing gold prices. By Feb. 22, 2022, gold was trading at above $1,900 per ounce. The increase in gold prices has been partly caused by increased interest in gold stocks, although investors had been shying away from gold stocks for the past couple of years, prompting fears that gold was losing its place as an inflation hedge. But they have been streaming back to gold-exchange traded products recently as inflation rates rise. Geopolitical tensions due to the ongoing conflict between Russia and Ukraine have also increased the demand for gold.
This has led to a sharp increase in inflows into gold-backed, exchange-traded funds and contributed to the increase in gold prices to $1,900 per ounce. Joni Teves, an analyst at UBS Group AG, said that short-term momentum buying could push gold prices to the $1,920–$1,950 range. UBS Group AG is an international company that offers financial services in more than 50 nations.
Such dividend announcements by companies such as Newmont point to the overall success of the entire gold extraction segment, including players such as StraightUp Resources Inc. (CSE: ST) (OTCQB: STUPF).
NOTE TO INVESTORS: The latest news and updates relating to StraightUp Resources Inc. (CSE: ST) (OTCQB: STUPF) are available in the company’s newsroom at https://ibn.fm/STUPF
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