Gold Nugget
What has been described as the world's second largest intact gold nugget is held during its first public display at the Perth Mint in Perth, Western Australia April 9. Reuters

A Victoria man recently had the good fortune of finding a four-kilogramme gold nugget which gave him a $250,000 windfall, paying off for the years of prospecting he has done. However, one does not have to dig earth to hit the yellow metal.

Business Insider reports that Resolute Mining, a junior Australian miner listed with the Australian Stock Exchange, is offering dividends in gold. In a policy believed to be a global first, shareholders were told they have the option to pick their dividend payout of 1.7 cent a share in physical gold. Stockholders will receive a total of $11.1 million, equivalent to 2 percent of Resolute’s 2016 gold sales of $555 million.

The option for cash remains, while stockholders who have holdings of over 5,000 or more ordinary shares in the mining company could accept a payout in gold through a personal account with Perth Mint which is guaranteed by the government. John Welborn, CEO of Resolute, says the miner decided to come out with the policy because of the company’s strong performance, such as a profit of $213 million for 2016, earned from its two gold mines in Mali (Syama) and Queensland (Ravenswood), reports Yahoo News.

Besides the strong performance, the firm owes no debt and has $102 million in cash and bullion in the bank. Gold and silver sales also increased by 21 percent.

Welborn explains, “The policy rewards shareholders by providing a sustainable income stream that allows direct participation in Resolute’s ongoing production success.” He adds shareholders would be rewarded with a dividend based on a fixed proportion of future revenue from the miner’s gold production. They can store and accumulate dividends in gold and convert their gold balances into cash or physical gold bullion.

VIDEO: Miningscout-interview: Introduction of Australian Gold Producer Resolute Mining

Source: Miningscout.de