Newcrest Mining Ltd today said its shareholders may be in line for greater dividends if the gold price remains strong, forecasting that its capital needs will fall as new mines edge closer to development.
Chairman Don Mercer told the company's annual shareholders’ meeting in Melbourne said it will be able fund new projects such as the Wafi-Golpu mine in Papua New Guinea with South African partner Harmony Gold Mining Co mostly from its cash flow in future.
"Sustaining this position, other things being equal, should allow for greater dividend distribution to shareholders in the future,"Mercer said.
He said Newcrest--Australia's largest gold producer by market value--felt it was prudent not to pay a special dividend for the 2012 financial year.
The ordinary dividend for the year was increased 17%.
Newcrest is targeting sustained annual production of more than 3 million troy ounces of gold within a few years.