Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Canada’s Yamana Gold is considering a further increase in dividends of between 50% and 100%, its executive chairman told Reuters, after doubling the payout this year.
Yamana Gold, which sold its $1 billion copper-gold mine to Lundin Mining this year, doubled its dividend this year to 4 U.S. cents per share in its third quarter.
“We are considering another dividend increase and believe that we can support an increase that is at least 50% higher than our current dividend and potentially 100% higher,” executive chairman Peter Marrone said.
“We are in the process of creating a reserve cash balance that would help ensure that our dividend remains sustainable even if the price of gold declines.”
Gold mining companies have been helped by a 14% rise in the spot prices this year to six-year highs which has boosted revenues and spurred some mergers and acquisitions.
Elsewhere in the sector, in November Barrick Gold raised its quarterly dividend by 25%, while Kirkland Lake Gold lifted its payout by 50%.
Yamana Gold’s Toronto-listed shares are up 50% so far this year.
(By Zandi Shabalala; Editing by Edmund Blair)
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