Newmont Mining Corp. (NYSE: NEM – $35.04) said its Board of Directors declared a one-time special dividend of $0.88 per share conditional upon approval of the pending Goldcorp transaction. The dividend will be paid to shareholders of record as of April 17, 2019, which is prior to closing of the proposed Newmont/Goldcorp combination. The payment is conditional upon the approval by both Newmont’s and Goldcorp’s shareholders of the resolutions to be considered at their shareholder meetings on April 11 and April 4, 2019, respectively. The payout will be paid on May 1, on the condition that the merger moves forward. Separately, the Denver-based gold and copper producer said independent proxy advisory firm Institutional Shareholder Services Inc. has recommended that Newmont shareholders vote in favor for each of the company’s resolutions in connection with the proposed combination with Goldcorp.
The special dividend delivers value to existing Newmont shareholders with an immediate cash payment for a part of the synergy potential arising from the Nevada mining joint venture announced with Barrick Gold earlier this month. My five percent allocation in NEM for aggressive accounts is being maintained.