DENVER--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced a plan to significantly increase its quarterly dividend by 79 percent to $0.25 per share, or an expected $1.00 per share annually, which will become effective upon approval and declaration of the first quarter dividend in April 2020. The increased sustainable dividend supports an industry leading return profile and aligns with the Company’s disciplined approach to capital allocation, which includes maintaining an investment grade balance sheet, investing in profitable growth and returning cash to shareholders.
In addition to increasing the dividend, the Company plans to continue to execute on its recently announced stock repurchase program for up to $1 billion of common equity. For the quarter ended December 31, 2019, the Company has utilized the repurchase program to retire 12.4 million shares totaling $506 million. Altogether, Newmont returned approximately $1.4 billion to shareholders in 2019.
“We are pleased to announce a planned increase to our annualized dividend by 79 percent 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,” said Tom Palmer, President and Chief Executive Officer. “Our first quarter dividend will offer investors a highly competitive dividend yield and enhanced returns from owning shares of the world’s leading gold company.”
Newmont has the strongest and most sustainable portfolio of operations, projects and exploration prospects in the gold sector. These assets allow the Company to sequence profitable projects in its unmatched pipeline to sustain stable gold production over a decades-long time horizon in top-tier jurisdictions around the globe. Newmont enters its centenary year in May of 2020 and will begin its next century of superior performance, value creation and sustainability leadership on May 2, 2021.
The declaration and payment of future quarterly 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.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.
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. Forward-looking statements often contain words such as “expect,” “intend,” “plan,” and “will.” Such forward-looking statements may include, without limitation, statements or expectations regarding future dividend payments, future balance sheet strength, future production, future cash flows, future share repurchases and future shareholder value and returns. Investors are cautioned that 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, balance sheet strength, cash and liquidity requirements, future prospects, gold price fluctuations and other factors deemed relevant by the Board. The planned dividend increase reflects management’s expectations. However, 2020 dividends have not yet been approved or declared by the Board of Directors. 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 dividend plans at any time without prior notice. With respect to the stock repurchase program, investors are reminded that the extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including trading volume, market conditions, legal requirements, business conditions and other factors. As such, no guarantees can be made with respect to the impact of the program. The repurchase program may be discontinued at any time, and the program does not obligate the Company to acquire any specific number of shares of its common stock. As such, no guarantees can be made with respect to the impact of the authorized program. Investors should not place undue reliance on forward-looking statements.