Dividend Payments May Be Withheld Without Updated Banking Details
Newmont Corporation has updated its dividend announcement to include currency exchange rates and payment instructions, clarifying tax withholding and payment options for investors.
- Ordinary dividend of USD 0.25 per security for Q3 2025
- Dividend payable on 22 December 2025 with currency exchange rate update
- Default 30% U.S. non-resident withholding tax unless tax treaty benefits claimed
- Dividend payments default to AUD, with options for USD or NZD
- Mandatory direct credit payments require valid banking details to avoid withholding
Dividend Update and Currency Details
Newmont Corporation (ASX, NEM) has issued an update to its previously announced dividend distribution, providing important details on currency exchange rates and payment logistics. The ordinary dividend of USD 0.25 per security relates to the quarter ending 30 September 2025 and is scheduled for payment on 22 December 2025. This update clarifies the Australian dollar equivalent and exchange rates that will apply, ensuring investors have a clear picture of their expected returns.
Tax Withholding and Investor Obligations
As a U.S.-based entity, Newmont is required to withhold non-resident tax at a default rate of 30% on dividends paid to foreign investors. However, investors who certify their tax residency in countries with applicable tax treaties can benefit from reduced withholding rates. The company has provided guidance on how holders can claim these benefits by submitting the necessary U.S. tax certification forms prior to the dividend record date of 26 November 2025.
Payment Currency Options and Requirements
By default, dividend payments to CHESS Depositary Interest (CDI) holders will be made in Australian dollars. However, investors have the option to elect payment in U.S. dollars or New Zealand dollars by updating their payment instructions online by 26 November 2025. For holders with registered addresses in Australia, New Zealand, or the United States, payments will be made by mandatory direct credit to nominated bank accounts. Failure to provide valid banking details or Global Wire payment instructions will result in withholding of payments without interest until proper instructions are received. Investors residing outside these countries will receive payments by cheque in Australian dollars unless they provide valid banking details.
Implications for Investors
This update underscores the importance for Newmont’s investors to review and, if necessary, update their tax and banking information promptly to avoid delays or unnecessary withholding. The clarity on currency exchange rates and payment options also helps investors better anticipate the value of their dividend payments amid fluctuating currency markets. While the dividend is unfranked, meaning no Australian franking credits apply, the clear communication of withholding tax obligations and payment logistics reflects Newmont’s commitment to transparency and investor service.
Bottom Line?
Investors should act swiftly to update tax and payment details ahead of the December dividend to secure timely and maximised returns.
Questions in the middle?
- Will currency fluctuations materially affect the AUD equivalent dividend received by investors?
- How many investors have yet to claim tax treaty benefits to reduce withholding tax?
- Could future dividend payments see changes in currency default or payment methods?
