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Company News

CORRECTED-Yamana Gold considers another doubling in dividend payout - chairman

(Changes title throughout to executive chairman, not CEO)

LONDON, Nov 29 (Reuters) - 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. (Reporting by Zandi Shabalala; Editing by Edmund Blair)

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