Mr. Scott Parsons reports
ALAMOS GOLD INCREASES DIVIDEND BY 25% TO ANNUAL RATE OF $0.10 PER SHARE
Alamos Gold Inc.'s board of directors has authorized a 25-per-cent increase to the company's quarterly dividend to 2.5 U.S. cents per common share. This represents the second consecutive quarterly increase for a cumulative increase of 67 per cent over the past two quarters.
The increase is supported by the company's strong outlook and free cash flow generation in the second half of 2020, including $58-million in the fourth quarter. The company expects to continue generating strong free cash flow while reinvesting in high-return internal growth initiatives that will in turn support further returns to shareholders. The company has paid dividends for 12 consecutive years, during which time $196-million has been returned to shareholders through dividends and share buybacks.
The dividend is payable on March 31, 2021, to shareholders of record as of the close of business on March 17, 2021. This dividend qualifies as an eligible dividend for Canadian income tax purposes.
Dividend reinvestment plan
The company has implemented a dividend reinvestment plan (DRIP). This gives shareholders the option of increasing their investment in Alamos, at a discount to the prevailing market price and without incurring any transaction costs, by electing to receive common shares in place of cash dividends. For shareholders that elect to participate in the DRIP, common shares will be issued from treasury at a discount of 3 per cent to the prevailing market price.
Enrolment in the DRIP is optional. Further information on the plan, including the forms needed to enroll, are available on the company's website. In order to be eligible to participate in the March 31, 2021, dividend, enrolment must be completed by 4 p.m. EST on the fifth business day prior to the March 17, 2021, dividend record date.
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in Northern Ontario, Canada, and the Mulatos mine in Sonora state, Mexico. Additionally, the company has a significant portfolio of development-stage projects in Canada, Mexico, Turkey and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The company's shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol AGI.
All amounts are in U.S. dollars, unless otherwise stated.
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