Randgold Resources to remain dividend-driven midtier producer
Thursday, March 7, 2013 at 06:29PM
Gold Prices

 

TORONTO (miningweekly.com) – Africa-focused miner Randgold Resources on Wednesday affirmed its intention to remain a dividend-driven midtier gold producer in a global mining environment of rising costs and difficult equity and debt markets.


CE Mark Bristow said that after the past number of years’ sustained gold price above $1 000/oz, any midtier gold miner that was in production should by now have shored up significant free cash flow with which to fund growth projects.

He said Randgold could technically afford to build a new $600-million mine every five years, while maintaining attractive dividend payouts. So comfortable is the company, that in February it had lifted its yearly dividend for the period ended December 31 by 25% to 50c a share, compared with 40c a share for 2011.

Speaking at an investor presentation hosted by Rangold during the Prospectors and Developers Association of Canada’s show, Bristow said, as long as there was about $600-million to $700-million cash in the bank to work with, he was happy to distribute the rest as dividends.

He emphasised that the company saw itself as a good potential joint venture partner for juniors.

Read more here.

With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.

Great care will be needed in the selection process in order to generate a reasonable profit and that’s where our new venture begins. ‘Stock Trader’ has begun trading on behalf of ourselves and our much valued subscribers, all exciting stuff which we are really looking forward to, if you wish to join us then please subscribe below;

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

Don’t forget if you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Article originally appeared on Gold Prices (http://www.gold-prices.biz/).
See website for complete article licensing information.