DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) announced its Board of Directors declared a quarterly dividend of $0.025 per share of common stock, payable on September 26, 2014, to holders of record at the close of business on September 11, 2014. The third quarter 2014 dividend is based on the average London P.M. Fix of $1,288 per ounce for the second quarter 2014.
Newmont's gold price-linked dividend policy includes a quarterly dividend payable based on the average London P.M. Fix for the preceding quarter. The first payout level begins between $1,200 and $1,299 per ounce, with an annual dividend of $0.10 per share or $0.025 per quarter. The second payout is between $1,300 and $1,399 per ounce, with an annual dividend of $0.20 per share or $0.05 per quarter. For each $100 per ounce additional increase in the average realized gold price above $1,300 per ounce, the annual payout increases at a rate of $0.20 per share or $0.05 per quarter.
The declaration and payment of 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.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, including, without limitation, statement relating to future dividend payments, gold prices, return on capital, investments, operating cash flow, financial flexibility and balance sheet strength Investors are cautioned that the updated gold price-linked dividend policy is non-binding. The declaration and payment of future dividends remain at the discretion of the Board of Directors and will be determined based on Newmont’s financial results, cash and liquidity requirements, future prospects and other factors deemed relevant by the Board. The Board of Directors reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on the common stock of the Company, the Board of Directors may revise or terminate such policy at any time without prior notice. As a result, investors should not place undue reliance on such policy or guidelines.