KL dividend increase NEM: NEUTRAL, US$80 – 60% increase in the quarterly dividend to $0.60/share; supported by a framework to return 40-60% of incremental attributable free cash flow to shareholders that is generated above a $1,200/oz gold price, so the Newmont dividend framework shares incremental free cash flow at higher gold prices; in this instance, the dividend increase was based on a $1,500/oz gold price assumption and a 40% percent payout rate applied to the incremental $1.2Bln in incremental free cash flow for the given $300/oz change in the gold price.
Here is what would happen to dividends for our Senior Gold group if they all followed the Newmont framework under a 50% payout ratio; biggest dividend increases would come from Kirkland, Yamana, and Barrick; as well, Yamana, Kirkland and B2 Gold would have the highest dividend yield; and Kinross and Agnico the lowest.
IF KL would follow NEM, its dividend wold increase a whopping 85% for here.
With cashflow of KLm, they need to adjust at least 50% higher.