A dark pool buy order was detected in AUY stock on January 7, 2020.
We think the huge dark pool print was a buy order because of how AUY stock immediately responded following the print.
On December 16, 2019, YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) announced several changes in its dividend and the establishment of a new dividend policy.
Yamana Gold announced an additional 25% dividend increase to $0.05 per share annually, effective for the first quarter of 2020. This follows the 100% increase in dividends declared in the third quarter of 2019, thereby representing a 125% increase in dividends since the third quarter of 2019.
These initial two increases are part of a gradual and progressive approach to dividend increases as the Company’s cash balances continue to grow from increasing free cash flow1 and successful and continuing initiatives to monetize its portfolio of non-producing assets and financial instruments.
Along with other manners of reporting dividends, the Company will begin to report dividends on a per gold equivalent ounce (“GEO”) of production basis with the latest increase bringing the dividend level to $50 per GEO with room for further increases.
The Company sees dividends as a return on investment to shareholders that stems from disciplined management of financial resources and capital allocation. The Company considers it normal course that as margins increase, it should be able to manage and reinvest in its business, fund its obligations and improve its balance sheet, and have residual cash available to pay and increase dividends.
Further, dividends should be sustainable at any level, including after increasing to a new level. Recognizing that the gold price is not within the Company’s control, the Company has implemented a policy establishing a cash reserve fund that will be available to be drawn upon, if required, were the gold price to decline and negatively impact margins over a longer period of time.
While the balance in the cash reserve fund would change from time to time, the Company intends to maintain a balance that can support the current or any future increased dividend for a minimum period, which may vary from time to time but is intended to be no less than three years, independent of prevailing gold prices.
While the Company is and expects to continue to generate cash flow that will create and augment the cash reserve fund, the Company is also advancing multiple monetization initiatives that will generate additional cash, some or all of which would further support the cash reserve fund.
The Company has paid dividends consistently through twelve of its sixteen-year history since declaring its first dividend in 2007. The Company was in its initial capital spending and development phase from 2003 to 2006.
In the twelve-year period since 2007, the Company has paid more than $900 million in dividends, which is industry leading for the same period. The Company views the payment of dividends as an important mechanism to manage its capital base and maximize returns for shareholders.
Yamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas.