Sunday, July 5, 2015

Altius Minerals increases dividend


Altius Minerals Corporation is pleased to announce that its board of directors has declared a cash dividend on its common shares of three cents per common share to all shareholders of record at the close of business on July 6, 2015. The dividend is expected to be paid on or about July 20, 2015.
John Baker, Executive Chairman of Altius, commented, “Upon successful closing of our acquisition of Callinan Royalties Corporation immediately following our year end we have re-assessed our internal estimates of net debt to EBITDA and sustainable free cash flows and determined that an increase to our dividend from $0.08 to $0.12 per year is now appropriate. The decision to increase dividends by 50% has considered a number of factors including our expected royalty revenues, taxation levels, debt service requirements and G&A expenditures. It also recognizes that resource markets are cyclically depressed and that opportunities to develop future growth are accordingly strong. Our capital allocation strategy in the current market environment therefore seeks to strike an optimal balance between opportunistic growth funding, further net debt reduction and shareholder capital returns”.
This is great news because the company is continuing pay down debt and to buy additional royalties while increasing cash dividends and buying back shares. This is all happening in the midst of a big downturn in the resource markets. I imagine this company will fly once the bull market returns in commodities. Here is a link to my original article on Altius Minerals. 

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