Gold miner Kingsrose Mining says it will pay a maiden unfranked interim dividend of four cents a share from the cash mounting up from its Way Linggo gold-silver project in Indonesia.
Kingsrose said it held $43 million in cash and bullion at the end of March and no debt.
The company said the decision to pay a dividend reflected the board’s strong confidence in production levels and extremely robust cash operating margins at its 85 per cent-owned Way Linggo project.
Kingsrose produced 34,699 ounces of gold equivalent at a cash operating cost of $248 an ounce after silver credits in the nine months to March 31.
This production figure comprised 28, 888 ounces of gold and 332, 327 ounces of silver.
Kingsrose expects to produce 37,000 ounces of gold alone this financial year, rising to 40-50,000 ounces in full-year 2013 with a medium-term target of 55,000-65,000ozpa.
The growth will stem from the start of production at Kingsrose’s second mine, Talang Santo, at the end of the quarter.
Kingsrose managing director Chris Start said the company would still have adequate cash to fund its exploration programme, aimed at establishing a third mining front.
“We have a $14 million annual exploration programme involving 12 rigs across numerous targets, some of which are extremely advanced,” he said.
“We also have a policy of self-funding our exploration and project development at Way Linggo.
“The dividend payment means we can reward our shareholders whilst meeting our objectives at the same time.”
Kingsrose shares closed flat at $1.10.