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Mining companies realizing that the bankers are shorting their stocks like crazy are now changing their dividend policy to raise the value of their shares. Yesterday we had news about Newmont. Today it is Hecla mining: (courtesy jim sinclair)
Gold Miners Becoming Land Bank Cash Machines CIGA Eric
The miners will do a lot better than this in time. Soon the public will come to realize the miners as land bank cash machines. While the gold train has clearly left the station, it’s hesistant on the tracks in recent weeks has booted even more passengers.
Many investors will jump on the gold train late and close to the final destination, thereby, ensuring their place as the ultimate bag holders of the great secular bull. The gold shares are picking up steam in September, but few notice with so many screaming for a top. Watch dividends rise and history repeat with little media coverage and fanfare.
S&P Gold (Formerly Precious Metals Mining)* clip_image001
Headline: Hecla Introduces Silver-Linked Dividend Policy
COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (“Hecla”)(NYSE:HL) is very pleased to announce that its Board of Directors has adopted a common stock dividend policy that links dividend payments to Hecla’s average quarterly realized silver price in the preceding quarter.
The initial quarterly dividend under the policy is expected to be $0.03 per share of common stock ($0.12 per year), if Hecla’s average realized silver price for the third quarter is $40.00 per ounce. All dividends, including those in the third quarter, would increase or decrease by $0.01 per share ($0.04 annually) for each $5.00 per ounce incremental increase or decrease in the average realized silver price in the preceding quarter. Subject to Board approval, it is expected that the initial quarterly dividend under this policy will be declared and payable before the end of the fourth quarter and will be based on average realized silver prices during the third quarter 2011. The table below provides an overview of the new dividend policy.
Source: finance.yahoo.com
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and for those that missed the Newmont mining dividend policy change:
Newmont Mining Refines Policy For Gold-Linked Dividend PaymentsDOW JONES NEWSWIRES
Newmont Mining Corp. (NEM) has refined its policy for issuing dividend payments based upon the price of gold, making the changes as the value of the precious metal continues to climb.
The world's second-largest gold producer after Barrick Gold Corp. (ABX) in April unveiled a plan to base its dividend payments on gold prices. Rising gold prices have generally boosted the company's earnings results in recent quarters.
Under its new policy, Newmont's dividend payments will continue to be linked to changes in the price of gold, yet will now allow for an additional 7.5 cents a share when Newmont's realized gold price for a quarter exceeds $1,700 per ounce. When Newmont's realized gold price for a quarter exceeds $2,000, an additional 2.5 cents will be merited.
Unveiling the plan in April, Newmont said its annual payout would rise by 20 cents a share for each $100 per ounce increase in the average realized gold price, bringing its annual payout to $1 a share.
Newmont bases the payout on its average realized gold price in the preceding quarter. The company said Monday that at average realized gold prices below $1,700 per ounce, the current dividend policy remains unchanged.
"Newmont's cash flow and balance sheet strength in the current metal price environment provide us with the flexibility and strength to simultaneously fund our internal growth pipeline and return meaningful cash to our shareholders,"
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