Aura Minerals Revamps Dividend Strategy to Boost Shareholder Returns
Aura Minerals Updates Dividend Policy for Enhanced Shareholder Returns
Aura Minerals Inc. has recently made significant changes to its dividend policy, now aiming to pay dividends on a quarterly basis. This decision reflects the company’s commitment to providing consistent value to its shareholders. The announcement was made following the company’s robust financial performance in Q3 2024.
New Dividend Policy Details
Under this revised policy, Aura will declare dividends each quarter based on the company’s adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for the preceding three months. This will be calculated after taking into account the sustaining and exploration capital expenditures for the same period. Specifically, 20% of the reported Adjusted EBITDA will go toward these dividends, ensuring a systematic approach to distributing returns to shareholders.
Starting in the fourth quarter of 2024, dividends will be declared quarterly. The record date for these dividends will be at least seven business days after the financial results and management discussion are publicly released. This structured timeline will help shareholders plan accordingly for the receipt of their dividends.
Declared Dividend Amount
Aura has declared a dividend of US$0.24 per common share, amounting to approximately US$17.4 million overall. This dividend is premised on the solid financial results of the company for the three months ending September 30, 2024. It exceeds the minimum threshold established within the company’s dividend policy, showcasing Aura’s strong financial health.
Payments for these dividends will be made in US dollars on December 2, 2024. Anyone listed as a shareholder as of November 15, 2024, will be eligible to receive this dividend. Furthermore, holders of Brazilian Depositary Receipts (BDRs) will receive R$ 0.08 per BDR, with payments slated for distribution by December 18, 2024.
Aura's Commitment to Growth and Shareholder Value
Rodrigo Barbosa, President and CEO of Aura, expressed enthusiasm about continuing to deliver dividends, emphasizing how this aligns with the company’s overall growth strategies. He noted that the shift to a quarterly dividend format represents their confidence in sustainable growth and operational efficiency.
In addition to regular dividends, Aura intends to partake in strategic share buybacks while simultaneously investing in the growth of production and mineral resources. The company has a strong track record of prioritizing shareholder value through its past dividend distributions and operational strategies.
About Aura Minerals
Aura Minerals is a responsible mid-tier production company specializing in gold and copper extraction. Its operations span multiple locations in the Americas, including notable mines such as the San Andres gold mine in Honduras, the EPP and Almas gold mines in Brazil, and the Aranzazu copper-gold-silver mine in Mexico.
The company's commitment to holistic mining practices integrates community wellbeing, shareholder interests, and environmental stewardship. Aura believes that this comprehensive approach, termed "360° Mining", maximizes benefits not just for the company, but for all stakeholders involved.
For more details, Aura’s corporate updates and investor relations information can be found at their official website.
Frequently Asked Questions
What is the new dividend amount declared by Aura Minerals?
The new dividend amount declared by Aura Minerals is US$0.24 per common share for Q3 2024.
When will the dividends be paid?
The dividends will be paid on December 2, 2024, to shareholders of record as of November 15, 2024.
How often will Aura Minerals pay dividends now?
Aura Minerals has amended its policy to declare dividends quarterly starting from Q4 2024.
What is the purpose of the new dividend policy?
The new dividend policy aims to distribute a portion of the company's earnings regularly, enhancing shareholder returns based on its financial performance.
What does 360° Mining mean for Aura?
360° Mining represents Aura Minerals' holistic approach to mining, considering the social, economic, and environmental impacts of its operations.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.