Tribune, Rand to pay out $16m

Tribune Resources and Rand Mining will empty their cash reserves to pay out inaugural dividends to their shareholders, with their shared managing director to reap $3.1 million.

Tribune and Rand are closely linked to one another, sharing the same board of directors, the same major shareholders and even their South Perth headquarters.

In fact, they are the largest substantial shareholders in each other, with Rand owning 26.3 per cent of Tribune and Tribune owning 44.1 per cent in Rand.

The two companies own a combined 49 per cent stake in the East Kundana joint venture (with Northern Star Resources owning 51 per cent), which owns the Kundana gold operation north-east of Coolgardie.

Today, it was announced that Tribune would pay a 20 cents per share dividend to its shareholders, while Rand would pay 10 cents per share, both fully franked.

For Tribune, that means paying out about $10 million of its existing cash reserves of $11.3 million, while Rand will pay out $6.1 million using a mix of $3 million in cash and via the sale of some of its $31 million in gold stocks.

Anthony Billis, who serves as managing director to both companies, will receive a $1.81 million payout through the Tribune dividend and $1.31 million via the Rand dividend.

In a statement, Mr Billis said the payout reflected the companies’ current levels of profitability from operations and recognised the loyalty shown by shareholders.

“It is our maiden dividend and a very healthy one,” he said.

“We are pleased to have reached this milestone. We also look forward to the continued strength of the EKJV.”

In separate statements, both companies said their strategies were to begin distributing dividend returns to shareholders on a more regular basis.

Rand shares were 10.4 per cent higher to $2.32 each at 1:30pm, while Tribune shares were 4 per cent higher to $6.50.