As part of the Company's long-term strategy to maximize shareholder value, Centerra Gold commenced paying an annual dividend in 2010. The inaugural annual dividend of C$0.06 per common share was paid on September 8, 2010. In 2011, the Company increased the annual dividend to C$0.10 per common share and paid a one-time special dividend of C$0.30 per common share. Subsequently in 2012, the Company commenced paying its dividend on a quarterly basis and announced its first quarterly dividend of C$0.04 per common share, which on an annual basis is C$0.16 per common share.
In December 2016, Centerra’s Board of Directors at its regularly scheduled board meeting decided against declaring a third quarter dividend in 2016 due to the restrictions relating to funds held at Centerra’s wholly-owned Kyrgyz Republic subsidiary, Kumtor Gold Company, which were put in place by the Kyrgyz Republic courts in 2016. In addition, the Board decided to suspend future dividends for the time being. The Board will reassess the declaration of dividends once this matter is fully resolved.
Centerra's Board of Directors will review the amount of the dividend on an annual basis depending upon the Company's cash balances, operating cash flows, anticipated capital requirements for future growth, the yields of comparable companies' dividend rates, and such other considerations as the Board of Directors may consider relevant.
On July 26, 2016, the Company announced that its Board of Directors declared a quarterly dividend of C$0.04 per common share, payable on August 25, 2016 to shareholders of record on August 11, 2016.
The ex-dividend date was August 9, 2016.
Dividends paid by Centerra are designated as eligible dividends for the purpose of the Income Tax Act (Canada), and for relevant Canadian provincial and territorial income tax legislation, unless notice to the contrary with respect to a particular dividend is given.
Currently, Centerra does not have a Dividend Re-Investment Plan ("DRIP").