Shares in Randgold Resources edged up today as the West African gold producer held onto its progressive dividend despite lower gold prices.
The company's shares rose as much as two per cent to 6,405p per share this morning, before settling down slightly to end the day at 6,370p.
Randgold reaffirmed that its dividend will be increased or at least maintained annually. The company's board has proposed a 10 per cent rise in its 2015 dividend to $0.66 a share, with approval due at a shareholder meeting on 3rd May.
It comes at at time when most miners are fighting to stay afloat due to the challenging business environment. Industry heavyweights such as Rio Tinto, Anglo American and BHP have all been forced to slash their dividends.
But Randgold's chief executive, Mark Bristow, said that the company would be able to generate good cash flows even if gold prices fall below their current level of around $1,237.7 per ounce.
"Our mines have been modelled to generate cash flows at gold prices well below the $1,000 per ounce level," he said in the miner's annual report.
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"Our positive production and cost profiles extend to a 10-year horizon, we have had no impairments or write-downs, and have substantial cash resources."
But this is unlikely to be a concern anytime soon, with gold prices spiking recently, putting them on course for their biggest quarterly gain in 30 years.