>>23343894>During times of crisis or when it was felt that the monetary situation was weakening, the management of Homestake Mining would increase the dividend or they would pay an extra dividend. This kind of proactive behavior boosted demand for the stock from institutions and the public even when the dividend exceeded the actual earnings. As an example, after Great Britain abandoned the gold standard, Homestake increased the dividend from $6 to $7.80 in 1931.On other occasions, Homestake would routinely declare an extra dividend of $1. This dividend would typically come each September, which was in addition to the previously declared payments. While not guaranteed, the $1 extra dividend was paid almost every year and sometimes two or three times within a single year.
Inevitably the payments of dividends would only go so far. Without a profitable business, Homestake would be broke. To resolve this issue, Homestake Mining management was aggressive at increasing efficiencies. In the span of a five-year period, Homestake management was able to nearly double the gold recovery from $3.77 in 1925 to $6.17 in 1930.
