Newmont Updates Dividend Currency Details Ahead of June Payout

Dividend Update and Currency Clarification

Newmont Corporation has issued an update to its Appendix 3A.1 announcement, providing important details on the currency exchange rates applicable to its ordinary dividend payment for the quarter ending 31 March 2025. The company confirmed a dividend of USD 0.25 per security, which translates to approximately AUD 0.3823 based on the exchange rate of 1 USD to 1.5293 AUD as of the record date.

The dividend payment is scheduled for 20 June 2025, with the record date set on 27 May 2025. This update follows the initial announcement made in April and aims to clarify the currency arrangements and tax implications for holders of Newmont’s CHESS Depositary Interests (CDIs) listed on the ASX.

Tax Withholding and Treaty Benefits

As a US-based entity, Newmont is required to withhold non-resident withholding tax at a default rate of 30% on dividends paid to foreign investors. However, CDI holders who are tax residents of countries with a tax treaty with the US may qualify for a reduced withholding tax rate. To benefit from this, investors must certify their tax residency status before the dividend record date by submitting the appropriate US tax certification forms, which are accessible via Newmont’s investor website.

This tax withholding mechanism is a critical consideration for international investors, as it directly impacts the net dividend received. The update serves as a reminder for investors to ensure their tax documentation is in order to optimise their dividend returns.

Currency Options and Payment Methods

Newmont’s dividend payments default to Australian dollars for CDI holders, but investors have the option to elect payment in US dollars or New Zealand dollars. This flexibility accommodates the diverse investor base across these regions. Elections must be submitted by 17 – 00 AEST on 27 May 2025 to be effective for this dividend.

Payment methods depend on the holder’s registered address and banking details. Holders with Australian, New Zealand, or US addresses will receive payments via mandatory direct credit to nominated bank accounts. Those residing outside these countries will receive payments by cheque in Australian dollars unless they provide valid banking instructions or opt for the Computershare Global Wire payment solution, which facilitates international electronic payments.

Implications for Investors

This update underscores the importance of timely and accurate communication between investors and Newmont’s share registry, Computershare. Failure to provide valid banking details or payment instructions may result in withholding of dividend payments without interest until the information is received. Investors should also be mindful of currency fluctuations, as the AUD equivalent of the dividend may vary depending on exchange rates at the time of payment.

Overall, Newmont’s clear communication on dividend currency and tax matters helps investors navigate the complexities of cross-border dividend payments, ensuring smoother receipt of income and compliance with tax regulations.