Release date- 26122013 – COLORADO SPRINGS –
The Company is modifying its instituted monthly dividend from
The Board of Directors approved a modification of the Company’s instituted monthly dividend from
Although the Company does not yet know the exact impact of this new royalty, it is expected to increase the Company’s effective tax burden moving forward. The Board of Directors has determined it to be in the Company’s best interest to improve its cash position to provide financial flexibility for operations or future potential opportunities in this distressed mining space.
The dividend reduction also brings the payout ratio more in line with the Company’s long-term target to distribute dividends of approximately one-third of its
The actual dividend distribution may change going forward, as the Company assesses the impact of the newly imposed Mexican royalty on precious metals. The Company remains committed to its long stated goal of distributing as much cash back to its shareholders as often as possible. The forty-two consecutive monthly dividends paid to shareholders demonstrate this commitment, which equates to more than
‘Multiple factors contributed to the decision to decrease monthly dividend distributions for now,’ stated
Management has demonstrated its fiscal discipline to distribute substantial dividends to shareholders and is pleased, given the difficult times for the industry, to continue to pay a monthly dividend. However, with the metals space under extreme pressure, it is more important management allocate capital to ensure the success of the Company and its long-term growth objectives.’
Dividends may vary in amount and consistency or be discontinued at the Board of Directors’ discretion depending on variables including but not limited to operational cash flows, Company development requirements and strategies, construction, spot gold and silver prices, taxation, general market conditions and other factors described in the Cautionary Statement below and in the Company’s public filings with the
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words ‘plan’, ‘target’, ‘anticipate,’ ‘believe,’ ‘estimate,’ ‘intend’ and ‘expect’ and similar expressions are intended to identify such forward-looking statements.
Such forward-looking statements include, without limitation, the statements regarding
Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company’s actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company’s 10-K filed with the