Nevsun dishes out more dividends

Eritrea-focused gold miner Nevsun Resources on Monday boosted its semi-annual dividend 40% to $0.05 a share, as its cash pile from the Bisha mine continues to grow.

The company, which in May announced its maiden dividend at $0.03 a share, said the latest payout would be made on January 15 to shareholders of record as of the close of business on December 31.

CEO Cliff Davis said last week acquisitions was another place Nevsun was looking to spend some of the $227-million in cash the company ended the September quarter with.

The company reported earnings of $89-million for the quarter, as production at Bisha grew to 110 000 oz for the three-month period.

The mine poured its first gold in December last year, and Nevsun is busy expanding the operation in a $90-million to $100-million project set for completion in the first half of 2013. That will allow the mine to produce copper, in addition to the gold, silver and zinc

Shares in the company slipped 2.9% on the TSX to trade at C$5.36 apiece by 10:39.  - MiningWeekly

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Posted by admin on Nov 22 2011. Filed under Gold stocks. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry