At the Denver Gold Forum, Newmont Mining Corp. chief executive Richard O’Brien said the price of gold could top $2,000/oz.
The gold price has risen toward a six-month high of $1,700/oz, which is good news for Newmont, the world’s second largest gold producer, and its shareholders the Economic Times reported.

O’Brien noted that Newmont’s current annualized dividend of $1.40 per share represented a 3 percent yield based on the gold price, O'Brien said that at $1,800/oz, the dividend would be around $2 per share, or a 4 percent yield. "And at $2,000, which is not unreasonable, the dividend would be $2.70 per share, which is a 5.4 percent yield," he said.

Gold has never reached $2,000/oz. On Sept 6 last year, it reached an all-time high of $1,920.30/oz.

“If the price goes up, I think you will see us outperform the entire sector,” O’Brien told the industry conference in Denver.

Spot gold was up 0.4 percent at $1,731.20 an ounce in New York on Tuesday. The price has risen 2.5 percent this month to its highest level in six months.

Newmont’s stock was up 1.5 percent at $52.14 in afternoon trading on the New York Stock Exchange. Newmont introduced its gold price-linked dividend policy last year to attract investors, who are often more interested in buying physical gold than shares in the companies that mine it.
In July, Denver-based Newmont announced a quarterly dividend of 35 cents per share, payable on Sept. 28. That represents an annualized dividend of $1.40 per share the Economic Times reported.