(all amounts are in US dollars unless otherwise indicated)
TORONTO, Feb. 21, 2013 /PRNewswire/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") is pleased to announce that as part of the Company's long-term strategy to maximize shareholder value, the Board of Directors has approved the implementation of a new, two-tiered dividend policy:
- In 2013, the Company will pay an annual dividend of $0.16 per common share (payable quarterly);
- In subsequent years, the quarterly dividend will be linked to operating cash flow 1 ("OCF"), whereby the Company intends to pay out 20% of the OCF generated in the preceding quarter divided by the Company's outstanding common shares at the time the dividend is approved;
- The first quarterly dividend ( $0.04 per common share) is expected to be declared on March 25, 2013.
"We are very pleased that the transformation of AuRico has enabled us to introduce a regular quarterly dividend, supported by growing production at the Young- Davidson mine, expanding margins, declining capital requirements and a strong balance sheet. Linking the dividend to our cash flow stream will provide shareholders significant leverage to the growing production profile at the Young- Davidson mine, one of the most exciting, low cost mines to come into production in recent years," stated Scott Perry, President and CEO. He continued, "With a commitment to delivering reliable, consistent and sustainable performance, the Company is well positioned to reward our shareholders this year through a peer-leading yield of approximately 2.5% and in subsequent years by returning a significant portion of the growing cash flow generated from our operations. The implementation of a meaningful dividend policy along with the completion of the recent $300 million share buyback program clearly authenticates our ongoing commitment to delivering shareholder value."
About AuRico GoldAuRico Gold is a leading Canadian gold producer with mines and projects in North America that have solid production growth and exploration potential. The Company is focused on its core operations including the Young- Davidson gold mine in northern Ontario and the El Chanate mine in Sonora State, Mexico. AuRico's project pipeline also includes advanced development opportunities in Canada and Mexico. AuRico's head office is located in Toronto, Ontario, Canada.