LONDON — Canada’s Yamana Gold is considering a further increase in dividends of between 50 per cent and 100 per cent, its chief executive told Reuters, after doubling the payout this year.

Yamana Gold, which sold a US$1 billion copper-gold mine to Lundin Mining this year, doubled its dividend to 4 U.S. cents per share in its third quarter.

“We are considering another dividend increase and believe that we can support an increase that is at least 50 per cent higher than our current dividend and potentially 100 per cent higher,” Chief Executive Peter Marrone said.

“We are in the process of creating a reserve cash balance that would help ensure that our dividend remains sustainable even if the price of gold declines.”

Gold mining companies have been helped by a 14 per cent rise in the spot prices this year to six-year highs which has boosted revenues and spurred some mergers and acquisitions.

Elsewhere in the sector, in November Barrick Gold raised its quarterly dividend by 25 per cent, while Kirkland Lake Gold lifted its payout by 50 per cent.

Yamana Gold’s Toronto-listed shares are up 50 per cent so far this year.

Fonte: Financial Post