see ya, page-9

Hi Jrowl,

KCN - 5%. Based on last year's 20c dividend and a $4.00 SP.

RSG - 3.8% based on the 5c dividend and a $1.30 SP. Analysts think this could be raised to 10c (i.e. 5c x 2)

RRL - 4% Based on announcement of maiden dividend of 20c in September and an SP of $5.00

NST - 2.4% Based on maiden dividend of 2.5c and SP of $1.04. Likely that this will be added to with interim and final dividend and may yield 3-4%.

GORO (NASDAQ) - 5.3% Just an example of international miners - many to choose from. Gold and silver miner based in Mexico and pay monthly dividend.

My point is that SOME miners are realising that shareholders want a return on their investment via dividends. Those that recognise this will have their share prices re-rated accordingly. Refer Charlie Aitken of Bell Potter.

Investors who want gold exposure don't have to suffer from no dividend payments as miners are realising that dividends are important for SP performance (and thus cheaper equity if required). Listen to recent NST presentation (Jan 2013) from MD. He clearly states that miners are being told in no uncertain terms by their shareholders that dividends need to be paid.

The mining industry has a very poor record of returning profits to shareholders, instead they empire build and invest over the commodity cliff, paying far too much at the wrong point in the cycle.

If you are a gold producer with an established mine(s) and you are not either paying a dividend now or haven't flagged that you will when gold is +$1,600 then you have no intention to (IMO).

Cheers
John