Nevsun Resources (USA) (NYSEMKT:NSU) Increases Dividend Payout
By Gregory Peters
Boston, MA, 10/10/2013 (nysepost) – Vancouver, Canada based Nevsun Resources (USA) (NYSEMKT:NSU) is engaged in the exploration and production of mineral properties in Eritrea, Africa. Bisha Mine, its principal property consists of 39 square kilometers mining area, is rich in copper, gold, silver and zinc mineral resources and reserves. Bisha, a large massive sulphide open pit, is believed to be one of the premier grade open pit mines in the world. The Bisha Mine went into commercial precious metal production in February 2011.
Just recently, Nevsun Resources has completed a major copper expansion project and hence the Mine would transition to low-cost copper gold silver production through 2013. The Mine produced around 379,000 ounces of gold in 2011 and over 310,000 ounces in 2012.
Nevsun Resources mentions that the Bisha receives ongoing support from the local government who have also purchased around 30% interest (in addition to 10% legislated free carried interest).
Dividend Payout
Nevsun Resources (USA) (NYSEMKT:NSU) has no debt and pays dividends at par with industry peers. Lastly the company paid semi-annual cash dividend of $0.07 per share during July 2013, marking a significant increase of around 133% from its first announced dividend of $0.03 per share in May 2011 and a remarkable 40% increase from its previously paid dividend of $0.05 per share in January 2013. To notice, the company declared the first dividend only three months after declaring commercial production at the Bisha Mine.
The most recent dividend rate, accounts for an annual dividend of $0.14 per share and an annualized yield of 4.35% at the current market price. This yield as well as increase in dividend payout is commendable especially, when the gold mining sector is facing pressure from international gold rates and subdue market sentiments.
Stock Update
Nevsun Resources has market capitalization of $641.77 million with total 199.31 million shares outstanding. On Wednesday, October 9, 2013 the stock marginally gained to close at $3.22, around 2.15% below its 50 day average and over 8.3% below its 200 day average. The stock traded with volume of 337,846 shares, less than half of its 30 day average volume of 736,481 shares.
http://nysepost.com/nevsun-resources-usa-nysemktnsu-increases-dividend-payout-9629
Received on Thu Oct 10 2013 - 12:43:40 EDT