70% of free cash flow: Centamin’s golden reward

Dan Coatsworth

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Egypt-based gold miner Centamin (CEY) has surprised investors with plans to pay more than twice the amount of money it normally earmarks for dividends.

The miner has a policy to pay out between 15% and 30% of free cash flow as dividends each year to shareholders. Last week it put a smile on investors’ faces by saying it would pay 70% of free cash flow generated in 2016, equal to 15.5c per share. Analysts had only forecast 7c per share for the total dividend.

STORY IN NUMBERS Egypt

Sector peer Randgold Resources (RRS) on 6 February announced a 52% hike in its dividend. Investment bank Investec says this marks the start of ‘meaningful increases in shareholder returns’.

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