Nevsun Resources Ltd. cut its dividend and said in a Jan. 31 release that it will shift spending to the Timok copper-gold project.
It is not clear if, or when, Nevsun intends to reinstate the dividend. But the dividend cut comes as Nevsun pushes to develop the Timok project in Serbia. A Nevsun spokesperson could not immediately be reached for comment. In a statement, Peter Kukielski, Nevsun president and CEO, said dropping the dividend will help Nevsun grow Timok.
The company's most recent dividend of 1 U.S. cent was issued Jan. 17, 2018. Nevsun began issuing dividends in 2011 using cash flow from its Bisha copper-gold-zinc mine in Eritrea.
Nevsun said it would spend between US$50 million and US$60 million on Timok development in 2018, not counting exploration, and aimed to finish a pre-feasibility study and reserve estimate of the project in the first quarter.
Meanwhile, Nevsun gave an update on 2018 production. It forecasts zinc production of between 210 million and 240 million pounds and copper production of between 20 million and 30 million pounds. It estimated cash costs of between 60 and 80 cents per pound of zinc, assuming copper as a byproduct.
