Eldorado Gold ( EGO) will increase its dividend over the next few quarters with a 2% yield targeted, according to the company at the Denver Gold Forum. This is the second year the miner has paid a dividend after it instituted the policy at $1,200 gold prices. "I am sure our board will reconsider options" at these record high gold prices, according to Eduardo E. Moura, vice president of corporate development. Currently the company's dividend is 0.6%. Eldorado is among the miners to cave to pressure from investors to increase their payout. Newmont Mining ( NEM) is the leader, tying its dividend to gold price targets. Hecla Mining ( HL) followed today, linking its dividend to the average silver price sale in the previous quarter. Hecla's dividend will move by 1 cent per share for every $5 per ounce movement in the silver price. Eldorado has 6 operating mines, one mine under construction and two development projects, and has exposure to some risky regions like Turkey and China. The company is trying to produce 1.5 million ounces of gold a year starting in 2015. For 2011, Eldorado will grow production by 15% to 725,000 ounces at cash costs of $410 per ounce. Shares of Eldorado were rising 2.8% to $20.70.
|More on Gold Gold Price News|
|How to Invest in Gold|