Gold producer, Newmont Mining Corp(NEM) reported a fourth quarter profit on Friday. The company also announced an increase to its quarterly dividend.
The Greenwood Village, CO based company reported a fourth quarter profit of $673 million, compared with net loss of $1.03 billion last year. Excluding special items, the company reported earnings of $552 million, or $1.11 per share, down from $557 million, or $1.14 per share last year. Analysts expected 97 cents per share in earnings.
The company has been struggling in the last few quarters due to reduced production, rising costs with operating and development, and violet protests against its gold project in Peru.
Shares of the company’s stock dropped in 2012 due to deals which were made in 2010 that failed to meet expectations.
Increased capital costs and stagnated bullion prices also hurt the company.
However, the company is now showing signs of improvement from 2012. NEM admitted that spending has been high in the past, but it is cutting back to improve shareholder returns.
Newmont also reported that its board has approved a 21% increase to the company’s quarterly dividend. The company will now pay a 42.5 cent dividend starting in the first quarter of 2013. The dividend will be payable on March 28 to shareholders of record on March 13. The stock has an ex-dividend date of March 11.
Newmont Mining shares were up 70 cents, or 1.73% during premarket trading Friday. The stock has declined -31% in the past year.
The Bottom Line
With the increased dividend, shares of Newmont Mining Corp(NEM) will have a 4.19% yield, based on Thursday’s closing price of $40.55.
Newmont Mining Corp(NEM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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