Yamana Gold Inc. announced an increase its quarterly dividend for the second time this year on Wednesday as it reported a quarterly profit of $115.8-million.
The gold miner said it would now pay a quarterly dividend of 5 cents per share, up from 4.5 cents last month and 3 cents in April.
The increase came as Yamana reported a third-quarter profit of 16 cents per share, down from $139.2-million or 19 cents per share a year ago, due to an unrealized loss on foreign exchange.
Yamana reported adjusted earnings for the quarter of $190.3-million or 26 cents per share, compared with $117.3-million or 16 cents a year ago.
Revenue in the quarter totalled $555.2-million, up from $454-million in the same quarter in 2010.
The average analyst estimate had been for a profit of 26 cents per share, according to Thomson Reuters.
“We continued to focus on delivering growth across all measures, enhancing shareholder value and generating significant cash flow in the third quarter,” chairman and chief executive officer Peter Marrone said in a statement.
“We have consistently said that the objective of the company is to generate increasing cash flow and as our cash flow reaches a new sustainable level, we would evaluate further return of value to shareholders with the dividend.”
The miner sold 214,980 ounces of gold, 2.6 million ounces of silver and 38.7 million pounds of copper in the quarter compared with 217,094 ounces of gold from continuing operations, 2.5 million ounces of silver and 43.5 million pounds of copper from continuing operations a year ago.
Yamana has gold mines and projects in Brazil, Argentina, Chile, Mexico and Colombia. It also has several projects under development including the C1 Santa Luz, Pilar and Ernesto/Pau-a-Pique projects in Brazil and the Mercedes project in Mexico.
In September, Yamana, Xstrata Copper and Goldcorp Inc. signed a deal that will see a joint venture that’s owned by the companies acquire Yamana's Agua Rica project in Argentina.
Under the deal, the joint venture holds an exclusive four-year option to acquire the Agua Rica project for $110-million in cumulative payments by Goldcorp and Xstrata Copper.
Shares in Yamana, which reported its results after the close of markets, were up 40 cents at $15.60 on the Toronto Stock Exchange on Wednesday.