PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has launched a A$500-million share buy-back programme.
CEO Elizabeth Gaines told shareholders on Thursday that the share buy-back was a natural extension of the company’s capital allocation focus, which has shifted from debt reduction following the rapid de-gearing of the balance sheet, and the successful execution of Fortescue’s capital management strategy.
“With our continued strong operating performance, and new investments under way, the purchase of our own shares, funded out of operating cash flows, maintains our disciplined balance sheet management. This is consistent with our clear business strategy of investing in our core iron-ore business while pursuing growth and development in delivering returns to our shareholders.”
The buy-back will not require shareholder approval and will start after the release of the company’s quarterly report, on October 25.