There are quite a few S&P/ASX 200 Index (ASX: XJO) gold miners that pay dividends.
Some of those gold miners pay larger dividends than others.
Newcrest Mining Limited (ASX: NCM)
Newcrest Mining has a market capitalisation north of $20 billion.
Today, the company announced a new dividend policy to generate shareholder returns.
Newcrest’s new policy will target a payout of 30% to 60% of annual free cash flow to be paid in dividends. This is an increase from the previous range of 10% to 30%.
The board said that it was comfortable with the new policy having regard to Newcrest’s strong balance sheet, with minimal near term debt obligations and with financial policy metrics all very comfortably within targets, as well as its high free cash flow generation during a period of high gold prices.
The ASX 200 gold miner declared an interim dividend of US$0.15, fully franked. This was 100% higher than the prior year.
In terms of the rest of the profit result, Newcrest reported that both its statutory profit and underlying profit was $553 million, up 134% and 98% respectively. Earnings per share (EPS) was 121% higher.
Newcrest said that its all-in sustaining cost (AISC) margin was $842 per ounce, up 48%.
The company said that it generated record free cash flow for the half year to December 2020 of $439 million.
Broker Morgans has forecast a full year FY21 dividend from Newcrest of just over 47 cents, which equates to grossed-up dividend yield of 2.5%.
Evolution Mining Ltd (ASX: EVN)
This is another ASX 200 gold miner. It hasn’t reported its FY21 half-year result yet, but it has announced its quarterly report for the period to December 2020.
The company said that, for the quarter, it generated $258.9 million of mine operating cashflow, $170.5 million of net mine cashflow and $99.3 million of group cashflow. This cashflow helped Evolution Mining reduce net bank debt by $93.4 million to $86.9 million.
The above result was driven by gold production increasing by 6% quarter on quarter to 180,305 ounces. The all-in cost (AIC) declined by 5% to $1,582 per ounce for an AIC margin of $834 per ounce.
Evolution Mining’s management said that major projects investment remains on track to grow low-cost, high-margin production base.
The company has a few gold mines across Australia, with one in Canada.
Using the trailing dividends of Evolution Mining, at the current share price it has a grossed-up dividend yield of 4.8%. Evolution Mining has increased its dividend each year since 2016.
St Barbara Ltd (ASX: SBM)
This ASX 200 gold miner has operations in Australia, Canada and Papua New Guinea.
Its assets include the Leonora operations in Western Australia, the Atlantic Gold operations in Nova Scotia, Canada and the Simberi operations in Papua New Guinea.
St Barbara also hasn’t released its report for the first half of FY21, but it did release its quarterly highlight to 31 December 2020.
Quarter on quarter, St Barbara increased its gold production by 23% to 89,670 ounces in the second quarter of FY21. Its all-in sustaining cost (AISC) reduced to A$1,517 per ounce, down from A$1,711 per ounce in the first quarter of FY21.
The operational cash contribution in the FY21 second quarter was $83 million, up from $23 million in the first quarter of FY21.
For FY21, St Barbara is expecting to produce 370,000 ounces to 410,000 ounces of gold at an AISC of between A$1,360 to A$1,510 per ounce.
At the current St Barbara share price, it has a grossed-up dividend yield of 5%.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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