Canadian gold miner Goldcorp (NYSE: GG) increased the company’s dividend payment for the first time ever as third-quarter profits surged.
The company reported net earnings in the third quarter attributable to the shareholders of $466.5 million (or $0.63 per share), an increase of 309% from $114.2 million (or $0.16 per share) in the third quarter of 2009.
Adjusted net earnings were $231.5 million (or $0.31 per share), compared to $140.6 million (or $0.19 per share) in the third quarter of 2009.
Revenues increased 28% to $885.8 million, from $691.9 million in the same quarter last year. As a result Goldcorp increased their annual dividend from $0.18 per share (or $0.015 monthly dividend) to $0.36 per share (or $0.03 monthly dividend).
Goldcorp’s President and CEO commented on the third-quarter results saying, “Continued strong gold demand in the third quarter, along with Goldcorp’s lowest quarterly cash costs in over two years resulted in record cash margins of $979 per ounce, generating significant growth in both cash flow and earnings.”
The company also reaffirmed 2010 production guidance of approximately 2.55 million ounces of gold.
Despite the jump in dividend payment, Goldcorp remains one of the lowest-paying dividend gold stocks on the market.
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