Why are TerraCom (ASX:TER) shares up 10% today?

Australia-based mining resources firm, TerraCom Limited (ASX:TER), on Friday (26 August 2022), announced a final dividend of 10 cents per share, as declared by the company’s Board for the financial year ended 30 June 2022. Backed by the update, the shares of the company were spotted trading 10.714% higher at AU$1.085 apiece at 11:57 AM AEST on ASX.

Key highlights from TerraCom’s announcement:

• Terra’s final dividend stands at 10 cents per share. This features an ordinary dividend of 7.5 cents per share and a special dividend of 2.5 cents per share.The dividend will be unfranked.
• The ex-dividend date is 2 September 2022; Record date is 5 September 2022 and the Payment date is 19 September 2022.
• The company also informed that it has restructured its dividend policy as per which now Terra will try to give back 60% to 90% of its net profit after tax to shareholders.
• TerraCom also shared that upcoming dividends will be franked.

With operating assets in Australia and South Africa, TerraCom claims to be a low-cost metals producer. It stated in today’s release that a review of its complete capital management program is currently on. It intends to further improve working capital in the business and tax effective ways to make returns to shareholders.

Share price performance of TerraCom:

In last one year, shares of TerraCom have gained  533.53% and have accelerated 438.50% on year-to-date basis. Also, the share price has gained 236.56% in last six months and went up 32.96% in last one month. The last five trading days saw an appreciation of 11.61% in TER’s share price.