Pan African launches R50m share buyback programme
South African gold producer Pan African Resources has started a programme to buy back up to R50-million, or about £2.6-million, of shares in the company.
The JSE- and LSE-listed miner's board believes that, at the current price, the company’s shares offer significant value given the quality and profitability of its existing operations and growth projects. The board has, therefore, taken the decision to implement a share buyback programme as part of the company's broader strategy to deliver value to its shareholders.
"The company has a demonstrable record of circumspect capital allocation and this share buyback is compelling in its returns for shareholders, given the prevailing share price. Although it’s a small initial buyback, it signals that the company is prepared to consider share buyback as a means of returning capital to shareholders, when it is commercial to do so,” comments CEO Cobus Loots.
Pan African notes that R25-million of shares will be bought on each of the JSE and LSE.
Peel Hunt and RMB Morgan Stanley have been appointed to carry out on-market purchases of shares.
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