In December 2017, Morien approved the implementation of a dividend policy, and announced an inaugural dividend payment of $0.005 per share payable December 27, 2017 (see December 12, 2017 news release).
It is the Company’s current intention that in 2018 it will pay quarterly dividends of $0.0025 per common share. Beyond 2018 it is Morien’s intension to transition its dividend from a set quarterly amount to a percentage of free cash flow commensurate with Donkin mine production expansion. The dividend is intended to be variable and in relation to mine production and coal prices, being highly leveraged to the seaborne metallurgical coal market.
All future dividends will be subject to Morien’s Board of Director’s determination that the payment of a dividend is in the best interest of Morien and its shareholders, having regard to the Company’s cash reserves, anticipated financial requirements, legal requirements for the declaration of dividends and other conditions existing at such time, including forward coal production guidance from Kameron Collieries ULC, owner/operator of the Donkin Coal Mine. The Company’s dividend payments will qualify as an ‘eligible dividend’ for Canadian income tax purposes.