TORONTO, February 21, 2013 /PRNewswire/ -- (all amounts are in US dollars unless otherwise indicated)
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 Gold