Dividend Policy

You are here

Dividend Policy (as adopted by the Board of Directors on November 2, 2017)

Policy:

A goal of Goldbelt is to provide a meaningful and increasing dividend to the common stock Shareholders of the Corporation. The Board of Directors has sole authority to determine the extent, if any, and timing of all Dividend payments. Management has responsibility to provide the Board with a recommendation based on the Corporations current and future financial position, objectives and priorities.

Purpose:

To establish the policy and standardize the approach to determining the value of an annual dividend, Elders Dividend and any special dividends the Board of Directors elects to provide to the Corporation Shareholders.

Principles:

  1. Comply with Alaska law.
  2. Comply with any debt covenants.
  3. Not impact ability to operate in the future.
  4. Allow for company growth.
  5. Not reward the current generation of Shareholders at the expense of future generations - inflation proofing.
  6. Be based on objective criteria.
  7. Provide for smoothing of the amount over time to avoid sharp drops or increases in the dividend when possible.

Procedure:

  1. The indicated amount will be calculated using 25% of the average of the last three year's consolidated net operating income. This amount will be used as a guideline.
  2. The CFO will ensure that the Principles 1-4 above have been met with respect to the indicated amount and will certify that in his/her opinion the amount meets all the requirements set forth above.
  3.  In considering the actual amount to be distributed, the Board will consider other factors including the general economic climate, the outlook for the company's businesses and any other factors that could affect the company moving forward.

Timing:

  1. Management will develop its recommendation for the annual dividend no later than the beginning of the fourth calendar quarter of the year and will present its recommendation to the Board at a Regular or Special Board meeting.
  2. The Board will declare an amount and set the record date and payment date for the dividend. The payment date, unless otherwise set by the Board, will be the third week in November, prior to Thanksgiving.
  3. The amount and timing will be conveyed to the Shareholders (but not the media). Any of the above may be modified at any time at a duly constituted meeting of the Goldbelt, Inc. Board of Directors.

Special Dividends:

At the discretion of the Goldbelt, Inc Board of Directors it may elect to pay a Special Dividend which will be determined solely by the Board. Special Dividends are allowable on a limited basis and under the following conditions:

  • May be paid after the regular dividend has been determined and paid.
  • Sufficient capital is retained in the Company to maintain growth.
  • Established the basis for consistent and sustainable future dividends