DENVER, Sept. 19, 2011 /PRNewswire via COMTEX/ -- Newmont Mining Corporation NEM +0.21% ("Newmont" or the "Company") today announced enhancements to its industry leading gold price-linked dividend policy, announced initially in April 2011. Under the enhanced policy, Newmont's annual dividend has the potential to increase to $4.70 per share if the Company's average realized gold price reaches $2,500 per ounce.
The enhanced policy will continue to link the quarterly dividend rate to changes in the gold price but will also provide an additional step up of 7.5 cents per share when the Company's realized gold price for a quarter exceeds $1,700 per ounce and a further step up of 2.5 cents per share (10 cents in total compared to the existing policy) when the Company's realized gold price for a quarter exceeds $2,000. At average realized gold prices below $1,700 per ounce, the current dividend policy remains unchanged. Newmont's quarterly gold price-linked dividend payments are based on the Company's average realized gold price for the preceding quarter.
"In April, Newmont launched the industry's first and only dividend policy linked directly to the realized gold price," commented Richard O'Brien, President and Chief Executive Officer. "Newmont's cash flow and balance sheet strength in the current metal price environment provide us with the flexibility and strength to simultaneously fund our internal growth pipeline and return meaningful cash to our shareholders."