Resolute Mining, an ASX-listed junior with nine gold mines across Australia and African, has decided to offer its dividends in gold.
Shareholders can still opt for cash but now, under a new policy believed to be a world first, they can take pick up their latest 1.7 cent a share dividend payout in physical gold.
Those holding 5000 or more ordinary shares in Resolute will be offered the option of accepting their payout in gold via a personal account held with the government-guaranteed Perth Mint.
A short time ago, Resolute shares were up 3.4% to $1.82, up from a year low of about 23 cents.
Australian gold miners are a bright point in an industry dragged down by falling commodity prices.
The soaring price of the precious metal, now trading at more than $US1300 an ounce, up about 25% this calendar year, and a weaker dollar are giving the miners more local dollars for each ounce sold.
Resolute CEO John Welborn says the company’s strong performance, including a record 2016 profit of $213 million, has allowed the adoption of a unique dividend policy.
“The policy rewards shareholders by providing a sustainable income stream that allows direct participation in Resolute’s ongoing production success,” he says.
Resolute Mining has no debt and $102 million in cash and bullion in the bank. Revenue from gold and silver sales were up 21% in 2016.
“Resolute shareholders should be excited that they will now be rewarded with a dividend based on a fixed proportion of future revenue from our gold production,” says Welborn.
“Resolute shareholders will be able to safely store and accumulate Resolute dividends in gold and have the ability to convert their gold balances into cash or physical gold bullion.”
Resolute’s latest 1.7 cent a share final dividend will total $11.1 million or about 2% of the company’s 2016 gold sales revenue of $555 million.