Fresnillo to Pay “Extraordinary” Dividend of $22.39 per Share

Fresnillo plc (LSE:FRES) announced that it will pay its shareholders an “extraordinary” dividend of US$22.39 per share, equivalent to $165 million. The company also provided an update on the temporary suspension of its explosives permit at Minera Penmont and said that effective November 1, 2013, Roberto Diaz will be chief operating officer of Fresnillo.

As quoted in the press release:

The extraordinary dividend, payable on 11 November 2013 to shareholders on the register on 1 November 2013, will include dividend payments that shareholders may otherwise have expected to receive from dividends payable in 2014. This has been agreed by the Board of Fresnillo following a comprehensive review of the company’s current and future financial requirements. The board believes that the company has a strong balance sheet and is well placed to meet capital expenditure plans for its development and exploration projects. Given the foregoing, it believes that it is appropriate to make an advance of future earnings to shareholders at this time instead of at a future date.

Fresnillo’s existing dividend policy remains in place, which takes into account the profitability of the business and underlying growth in earnings of the Fresnillo Group, as well as its capital requirements and cash flows whilst maintaining an appropriate level of dividend cover.

Click here to read the full Fresnillo plc (LSE:FRES) press release.