Proof that gold miners are really profitable even with gold at current "low" levels!
"Newmont Mining (NYSE: NEM, Stock Forum),
after Tuesday's close, announced that its Board of Directors declared a
quarterly dividend of 35 cents per share of common stock, payable on
June 28, 2012, to holders of record at the close of business on June
"The 75% increase in our dividend compared to the second quarter of
2011 demonstrates our commitment to returning capital to shareholders,"
said Richard O'Brien, Newmont's President and CEO. "Our shareholders
continue to benefit from our preeminent gold price-linked dividend
The second quarter 2012 dividend of 35 cents per share was
declared in consideration of Newmont's first quarter 2012 average
realized gold price of $1,684 an ounce. Under the miner's gold
price-linked dividend guideline, each quarterly dividend will be based
on Newmont's average realized gold price for the preceding quarter.
At its current share price of $46.37, Newmont's quarterly dividend
payout rate would give its stock a yield of about 3% on an annualized
basis, presuming the gold price remained at $1,684 throughout the year.
At a $2000 gold price, the yield would jump to nearly 6% if the stock
stayed in the $46 range.
Despite its dividend increase, shares of Newmont Mining have
dropped 18% during the past 52 weeks. The company plans to release its
first quarter 2012 results before the market opens on Friday, April
27, 2012." From Stockhouse.com