OceanaGold PH [OGP 15.56, up 0.4%; 327% avgVol] [link] declared a Q3 dividend of $0.0138/share (~P0.81/share), payable on December 16 to shareholders of record as of November 20. The dividend has an annualized yield of 20.9%, based on OGP’s pre-announcement closing price of P15.50/share. OGP did not provide any context to the dividend, except to say in the disclosure that the amount distributed was taken from its unrestricted retained earnings as of Dec. 31, 2023.
MB bottom-line: This is a massive dividend, but what is more interesting to me is how the share price didn’t really move at all. If we assume that this level of dividend is roughly to be expected going forward (of course swings in the gold price or production are always possible), then we’d probably expect the share price to be a little bit higher as its income is tied to a commodity in a price uptrend with lots of upside potential as opposed to a commodity like coal that is in a long-term downtrend with only light to moderate upside potential. That said, I’m interested in digging into OGP’s Q3 Quarterly Report and whatever press release it puts out to get an idea of what production has been like this quarter and to get a better idea of how the profits will flow to shareholders’ hands in the future.
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