Gold Price Surge Fuels Australian Mining Boom
Australia's gold mining sector is experiencing a surge in activity, driven by the high price of gold. Alkane Resources, a Perth-based company, has announced its first dividend in almost 60 years, despite the recent fall in gold prices from an all-time high of $US5,589.38 on January 28.
The dividend is fully franked and amounts to two cents per share. According to Alkane's boss Nic Earner, the company exceeded its budgetary expectations due to the unexpected spike in gold prices, allowing it to accelerate capital growth projects and pay a dividend.
Earner emphasized that dividends must be sustainable, which is why they started small. Despite the recent fall in gold prices to about $US4,000, Earner remains optimistic, stating that 'it's just phenomenal' how much money the company can make when gold prices rise.