Newmont rebrands, ups dividend

DENVER-based gold major Newmont has dropped “Goldcorp” from its official name as it unveiled a brand refresh as part of its centenary celebrations and to reflect what it calls a strong and stable foundation following two major transactions in 2019.
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Newmont's new corporate logo

It comes after the company quietly stopped using the Goldcorp name in news releases last month.

Australian mining engineer Tom Palmer, who became Newmont CEO in September, said the rebranding came after the company completed two transactions, the sort "that you'd only normally do once in a generation", being the acquisition of Goldcorp and the Nevada joint venture in the same quarter.

"As this company has done many times in the past, Newmont has demonstrated its ability to adapt to change, which is truly a hallmark of our success over the last 100 years," he said.

"Updating our brand represents a natural step as we approach the next 100 years in Newmont's long and proud legacy of operating discipline, profitable growth, environmental stewardship, and developing the industry's best talent."

The updated Newmont logo uses the gold triangle from the previous logo which represents the apex of the industry and the pinnacle of leadership. The company celebrates its 100th anniversary in May.

Newmont also said it planned to increase its dividend by 79% to US$1 per share, effective upon approval and declaration of its first-quarter dividend in April 2020.

The company will continue its $1 billion share buy-back program.

"We are pleased to announce a planned increase to our annualised dividend by 79% to one dollar per share and will continue demonstrating our disciplined approach to capital allocation and the confidence we have in our business to deliver substantial future cashflows and returns for shareholders," Palmer said.
"Our first-quarter dividend will offer investors a highly competitive dividend yield and enhanced returns from owning shares of the world's leading gold company." 

Newmont said it returned $1.4 billion to shareholders in 2019, including the repurchase of 12.4 million shares in the fourth quarter. 

The company expects to produce 6.4 million ounces of gold this year at all-in sustaining costs of $975 an ounce.

Canaccord Genuity maintained a buy rating and $55 price target.

"We see the company as offering investors a steady production profile centred on geopolitically stable jurisdictions, with a deep project pipeline, strong balance sheet, and proven operating team," analyst Carey MacRury said.

Shares in Newmont last traded at $42.26, valuing the company at $35.5 billion.