Goldcorp Inc.'s (GG, Financial) board of directors declared a cash dividend for the second quarter on June 5.
The Canadian gold producer will pay two cents per ordinary share on June 23 to shareholders of record as of June 15.
The dividend is in line with its previous distribution. Goldcorp has paid dividends to shareholders every year since 2001, making it one of the few gold mining companies to do so continuously.
Goldcorp distributed a monthly dividend to shareholders until March 2016, when it switched to a quarterly dividend.
The change in frequency is not the only modification the company made to its dividend payments. Due to unexpected geologic issues experienced at Cochenour, the miner was forced to redraft its expectations for future gold production and move the project back to the advanced exploration stage. As a result, the company lowered the dividend from five cents per share to two cents per share.
Shareholders are also being given the option of reinvesting their dividend payments in exchange for common stock.Â
Goldcorp’s management is making several changes to operations with the aim to cut operating costs and increase efficiency. The company entered a series of agreements over the last couple of months, including a 50-50 joint venture with Barrick Gold Corp. (ABX, Financial) to develop the Maricunga belt in Chile - one of the largest undeveloped gold and copper deposits in the world – which should position Goldcorp to take better advantage of future gold prices and enhance the quality of its asset base to ensure long-term value.
Other deals the miner has made include the sale of its Los Filos Mine to Leagold Mining Corp. (TSXV:LMC, Financial) and the sale of Cerro Blanco Metallic Project to Bluestone Resources Inc. (TSXV:BSR, Financial).
Goldcorp is trading around $13.40 per share with a price-sales (P/S) ratio of 3.27 and a price-book (P/B) ratio of 0.84. The EV/EBITDA ratio is 10.10.
Disclosure: I have no positions in Goldcorp Inc.
