Procurement News Notice |
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| PNN | 1379 |
| Work Detail | Shareholders in Resolute Mining will have the option of collecting dividend payments in gold bullion, under a new policy believed to be the first of its kind in the world. The gold miner announced on Tuesday it would resume dividend payments, declaring a 1.7¢ per share final dividend for the 2016 financial year under a new gold sales-linked dividend policy. Resolute, which has not paid consistent dividends since the late 1990s, joined a group of local gold miners reinstating or raising dividends amid the best conditions the sector has enjoyed in recent years. But with a twist. Shareholders who hold 5,000 or more shares in the company can elect to receive dividends in gold bullion paid into a personal account held with The Perth Mint. It is a first for The Perth Mint and Resolute managing director John Welborn said he believes it is the first time a gold company has ever offered the option. "It is an idea I have had for a while and I am really excited about it," he said. "I think the mining industry does itself a disservice. If the [news] is talking about mining there is either an image of a big dirty yellow truck ... or a bunch of guys in hard hats and high vis. "As a gold miner I think what we do is more like Merlin the Magician. "We are more like alchemists. We take dirt from the middle of nowhere, in our case Africa, and we turn it into bullion, which is the sexiest thing in the world. This links in to a little bit of that excitement I hope. "We will dig it up and produce it and if you are a shareholder we will now give some of that on a recurring basis to you." Resolute plans to return 2 per cent of gold sales revenue to shareholders via a dividend each year. The Perth-based miner returned to the black in the 2016 financial year, swinging to a record net profit after tax of $213 million from a loss a year earlier of $569 million. Mr Welborn, who stepped into the CEO role in early 2015, said he expected the bullion option to appeal mainly to retail shareholders, but said he would be interested to see whether institutions proved keen to accumulate a direct holding in gold. "People who want to get exposure to gold by buying gold miners are often being told by investment analysts they are better off to buy gold and put it under their bed," he said. "A big part of my approach in joining Resolute is to make sure we provide positive, sustainable, enduring value for our shareholders." Resolute, which operates the Syama mine in Mali and the Ravenswood mine in Queensland, had $102 million in cash and bullion at the end of June. The resurgent gold price, up about 25 per cent this calendar year, has helped drive up Resolute's share price from a low of 23.5¢ in January to $1.9 a share on Tuesday. On Monday, S&P Global Ratings bumped up its gold price forecasts to $US1300 per ounce for the rest of this year, $US1250 per ounce for 2017 and $US1200 per ounce in 2018. Gold was last trading at $US1322.86. |
| Country | Australia , Australia and New Zealand |
| Industry | Financial Services |
| Entry Date | 02 Sep 2016 |
| Source | http://www.afr.com/business/mining/gold/resolute-mining-to-pay-dividends-in-gold-bullion-20160830-gr4c8q |
