Mr. Graham Shuttleworth reports
BARRICK PROPOSES RETURN OF CAPITAL DISTRIBUTION AND DECLARES DIVIDEND
Barrick Gold Corp. intends to propose to shareholders a return of capital distribution of approximately 42 cents per share. Also, the company's board of directors has declared a dividend for the fourth quarter of 2020 of nine cents per share, payable on March 15, 2021, to shareholders of record at the close of business on March 1, 20212. All amounts are expressed in U.S. dollars.
The return of capital will be proposed to shareholders at the company's annual and special meeting on May 4, 2021. This distribution is derived from a portion of the proceeds from the divestiture of Kalgoorlie Consolidated Gold Mines in November, 2019, and from other recent dispositions made by Barrick and its affiliates. It is proposed that the total distribution of approximately $750-million will be effected in three equal tranches to shareholders of record on dates to be determined in May, August and November, 2021.
Senior executive vice-president and chief financial officer Graham Shuttleworth said that the return of capital distribution demonstrates Barrick's commitment to return surplus funds to shareholders as outlined in the strategy announced at the time of the Randgold merger in September, 2018. Since that time, the quarterly dividend has tripled, and this capital distribution further increases returns to shareholders.
"The board believes that the return of capital distribution is the most efficient way to return these surplus funds to shareholders. Based on the current number of outstanding shares, this distribution represents approximately 14 cents per share for each tranche, or approximately 42 cents per share in total. In addition to the current quarterly dividend of nine cents per share, this distribution will provide shareholders with a significantly enhanced return in 2021," said Mr. Shuttleworth.
The board continues to review further returns to shareholders, which will be balanced and evaluated equally across other capital uses, including disciplined growth and debt management.
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