The Newcrest Mining Ltd (ASX: NCM) share price is sinking deep into the red on Wednesday.
In morning trade, the gold miner's shares are down almost 7% to $25.08.
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Why is the Newcrest share price sinking?
Thankfully for the company's shareholders, today's decline isn't because of a Liontown Resources Ltd (ASX: LTR)-Albemarle Corp (NYSE: ALB) style takeover collapse.
The deal with Newmont Corporation (NYSE: NEM) is well and truly going ahead.
In fact, it is because of this that its shares are falling today. With the deal on the verge of completion, Newcrest is now permitted to pay a special dividend to its shareholders.
Earlier this month, the Newcrest board determined to pay a fully franked dividend of US$1.10 per share if the takeover went ahead. This equates to approximately A$1.73 per share at current exchange rates.
When is payday?
Newcrest plans to pay this special dividend to shareholders before the end of the month. A payday of 27 October has been noted by management.
And based on yesterday's Newcrest share price of $26.90, this represents a very attractive 6.4% dividend yield. This is broadly in line with how much the company's shares have fallen today.
To put that yield into context, it would mean that a $10,000 investment in Newcrest shares would result in special dividends of approximately $640.
Farewell Newcrest, hello Newmont
With the Federal Court of Australia approving Newmont's takeover of Newcrest, it won't be long until its shares leave the ASX boards. The last day of trading in Newcrest shares is expected to be 26 October.
After which, on 30 October, the scheme consideration of 0.4 Newmont shares for each Newcrest share held will be issued to eligible shareholders.
Newmont CDI (ASX: NEM) will then commence trading on the ASX boards a little over a week later on 7 November.
