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Yamana Gold raises dividend by 100%; see above average cash flow in Q3

Kitco News

(Kitco News) - Precious metals investors continue to reap the benefits of higher gold prices as Yamana Gold announces a 100% increase in its quarterly dividend.

In a press release Thursday, the company declares a fourth-quarter dividend of $0.01 per share (annual $0.04 per share).

"The dividend reflects the level increased in the third quarter, which was a 100% increase over the previous level," the company said. "Yamana will continue to evaluate its dividend policy as it increases free cash flow and cash balances with the potential for further increases to its dividend."

The dividend announcement comes as the company said it report strong third-quarter earnings. The company reported adjusted net earnings of $49.5 million or $0.05 per share. Market analysts were expecting to see earnings of $0.02 per share.

Yamana also reported net free cash flow of $99.9 million. "Cash flows exceeded the average of the three preceding quarters," the company said.

"Our operations continued to show strong performance during the third quarter," said Daniel Racine, president and chief executive officer of Yamana. "We expect that to continue through the fourth quarter — historically our strongest — and beyond. This will have added financial benefits, including increased free cash flow, a stronger balance sheet, and greater financial flexibility to reinvest in the business, deliver growth, and increase returns."

The strong performance comes as a result of higher gold prices as the company report lower production numbers compared to the third quarter of 2018. For the third quarter, the company said it produced a total of 209,923 ounces of gold, down compared to 268,843 ounces produced last year.

For silver, the company produced 2.485 million ounces, down from 2.549 million ounces produced last year.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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