Nevsun Resources has the Highest Dividend Yield in the Gold Industry

Development News
A gold producer and base metal developer in Eritrea, has the highest dividend yield (4.1%) in the Gold industry
A gold producer and base metal developer in Eritrea, has the highest dividend yield (4.1%) in the Gold industry

By FNN Online,

BELOW are the three companies in the Gold industry with the highest dividend yields. Dividends can enhance returns for investors seeking income in addition to capital gains.

Nevsun Resources (AMEX:NSU) is highest with a dividend yield of 4.1%.

Nevsun Resources Ltd. is a gold producer and base metal developer. The Company has a gold-copper-zinc mine in Eritrea.

Thus far today, Nevsun Resources has traded 27,000 shares, vs. average volume of 220,000 shares per day. The stock has matched the Dow (with a -0.3% move) and matched the S&P 500 (with a -0.3% move) during today’s trading.

Following is Goldcorp (NYSE:GG) with a dividend yield of 3.3%.

Finishing up the top three is Barrick Gold (NYSE:ABX), with a dividend yield of 1.8%.

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ALSO READ : Can We Bank on Nevsun’s 4% Dividend Yield?
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Nevsun Expected to Come in on the Higher Side of 2015 Guidance: Dundee Capital


NEVSUN (TSE:NSU) is looking towards a promising a year according to analysts at Dundee Capital Markets who reiterated their top pick rating and 6.00 per share price target on the copper producer after reporting “conservative” 2015 guidance.

Dundee said that Nevsun’s copper production guidance for the year of 160 to 175 million pounds at an average feed grade of 3.9% copper is conservative especially the copper head grade and it expects the company to be “on the higher side of guidance.”

Vancouver-based Nevsun is the 60 percent owner and operator of the high grade Bisha mine in Eritrea northeast Africa.

“We believe there is great potential upside at Bisha and see 2015 as a very promising year for Nevsun Resources” wrote Dundee analyst Joseph Gallucci in a report released earlier Friday.

“That said we have slightly lowered our production to be in line with guidance.”

Nevsun said that it will focus on the Bisha life-of-mine extension this year as well as monetize stockpiled gold ore. It also promised to keep its zinc expansion project on time and on budget for commissioning in the first half of 2016. The miner said it is confident that project capex will remain in the range of 89 million.

The company is planning to announce a revised mineral resource estimate for its Bisha mine in the coming weeks based on a successful 2014 exploration program Dundee said. Nevsun is also preparing a revised life-of-mine plan for the third quarter which will include underground mining scenarios for the future.

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ALSO READ : Nevsun Resources Named #1 Fastest-Growing Company
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Cash costs at Bisha for 2015 are projected in the range of 1.20 to 1.40 slightly above Dundee’s estimate of 1.18 per pound.

“Nevsun’s Bisha Mine in Eritrea is among the highest-grade and lowest-cost base metal mines in the world” concluded Gallucci.

Shares of Nevsun which recently hiked its dividend to 4 cents per quarter was down 0.9 percent at C4.48 in Toronto as of 11:00am ET on Friday.