JOHANNESBURG (miningweekly.com) – Noting that it did not believe its current share price reflected the “strong” underlying cash position and value within the company’s assets, Lemur Resources has outlined plans to implement an on-market buy-back for up to 10% of its issued capital over the next 12 months.
The Sydney-listed company said on the Monday that the buy-back, which would start on December 8, represented an opportunity to add further value to the remaining shares on issue.
“This is a positive move for the company to restore value for all its shareholders in very difficult market conditions. The share price is trading at a significant discount to its cash value alone, despite it having a robust coal project in Madagascar,” commented CEO Anthony Viljoen.
The timing and quantity of shares bought would depend on market conditions and other future events, Lemur stated.