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Nevsun Hikes Semi-Annual Dividend

Zacks Equity Research

Nevsun Resources Ltd. (NSU) has increased its semi-annual cash dividend by 40% to 7 cents per share from the prior payout of 5 cents a share. The raised dividend will be paid on Jul 15, 2013, to stockholders of record as of Jun 28, 2013.

This marks the company’s 5th dividend payment and qualifies as an ‘eligible dividend' for Canadian income tax purposes. The hike brings the annual dividend to 14 cents per share.

Vancouver-based gold and base metal mining and exploration company, Nevsun, is engaged in acquisition, exploration, development, and production of mineral properties in Africa. Nevsun primarily operates through Bisha Mine in Eritrea, East Africa. Bisha is a large precious and base metal volcanogenic massive sulphide deposit of gold, silver, copper, and zinc and is under commercial production. The company also owns one exploration license at Mogoraib and another mining license for the Harena deposit.

Nevsun, which is among the prominent Canadian gold mining companies along with Barrick Gold Corporation (ABX), Goldcorp Inc. (GG) and Agnico-Eagle Mines Ltd. (AEM), came out with its first-quarter 2013 results on May 9. The company reported earnings of 5 cents a share in the quarter compared with 21 a share earned in the year-ago quarter, matching the Zacks Consensus Estimate.

Profit attributable to shareholders was $10.6 million. This represents a roughly 74% decline from $41.3 million posted in the prior-year quarter.

Revenues decreased 52.4% to $71.1 million in the quarter from $149.4 million in the year-ago quarter. Gold ounces sold in the quarter reduced due to lower level of gold produced resulting from lower grades and mill recoveries.

Nevsun currently holds a Zacks Rank #3 (Hold).

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