Greenwood Village-based Newmont Mining said Friday it is committed to linking its stock dividend to the price of gold, even as the mining company posted a 30 percent drop in quarterly profit and cut capital spending.
“We set the dividend policy in ways that we think are sustainable over the longer term,” chief executive Richard O’Brien told Wall Street analysts on a conference call.
“It is a policy and, as it suggests, that dividend policy does in fact enforce … capital spending and other spending requirements to ensure that we can keep the balance,” he said.
His comments came in response to a question after Newmont, the world’s second-largest gold producer, announced a quarterly dividend of 35 cents per share, payable Sept. 28.
It said that was a 17 percent increase over the dividend paid a year ago. Reuters
