Business
Approval of inaugural dividend
Approval of inaugural dividend.
About this update from Atalaya Mining Copper Sa
[{"type":"text","content":"\n \n \n \n RNS Number : 3544Q\n Atalaya Mining PLC\n 27 October 2021\n \n \n \n \n 27 October 2021\n \n \n Atalaya Mining Plc.\n \n \n (\"Atalaya\" or the \"Company\")\n \n \n Approval of inaugural dividend and future dividend policy \n \n \n \n \n \n Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to announce that the Company's Board of Directors has approved its inaugural dividend (the \"Inaugural Dividend\") as well as the adoption of a future dividend policy (\"Dividend Policy\") that will take effect from 2022.\n \n \n \n \n \n Background \n \n \n \n \n \n Following the expansion of Proyecto Riotinto's processing capacity to 15 Mtpa, Atalaya has been generating robust cash flow as a result of the plant consistently operating above nameplate capacity, coupled with the strong copper price environment.\n \n \n \n \n \n Accordingly, Atalaya is now in a position to reward its shareholders by initiating a sustainable dividend policy while still investing in its portfolio of low capital intensity growth projects, such as the San Dionisio deposit, Proyecto Masa Valverde and Proyecto Touro.\n \n \n \n \n \n Dividend Policy\n \n \n \n \n \n Consistent with its strategy to create and deliver shareholder value, the Company has approved a Dividend Policy that will make an annual payout of between 30% and 50% of free cash flow generated during the applicable financial year (\"Ordinary Dividend\"). \n \n \n \n \n \n The Dividend Policy will take effect in financial year 2022. The annual Ordinary Dividend will be paid in two half-yearly instalments and announced in conjunction with future interim and full year results. \n \n \n \n \n \n The declaration and payment of all future dividends under the new policy will remain subject to approval by the Board of Directors. \n \n \n \n \n \n Inaugural Dividend\n \n \n \n \n \n The Board of Directors has elected to declare an Inaugural Dividend of US$0.395 per ordinary share (approximately US$54.6 million), which is equivalent to approximately 29 pence per share. The Inaugural Dividend is for the nine months ended 30 September 2021 and represents a yield of approximately 7.3% based on the current share price.\n \n \n \n \n \n The record date for the Inaugural Dividend will be 5 November 2021 and the shares will become ex-d...