JOHANNESBURG (miningweekly.com) – Diversified miner Village Main Reef had cumulatively repurchased about 30.9-million of its own ordinary shares for some R36.9-million of the company’s available cash resources, through its wholly owned subsidiary Buffelsfontein Mines, the company said on Friday.
The repurchases comprised about 3% of the company’s issued share capital.
The 30 937 210 shares were to be held as treasury shares after the repurchase.
Village joint CEO Marius Saaiman said the share buyback demonstrated the company’s belief that the stock was clearly undervalued and was an indication of its future confidence in both the company and the market.
He added that, despite the buyback, Village would continue to repay its debts and the assets of the company and the group would remain in excess of its liabilities for a period of 12 months.
In addition, the company and the group’s ordinary capital and reserves would be adequate for ordinary business purposes and would provide the group with sufficient working capital.
“The share buyback will not influence the company’s ability to settle its obligations in the ordinary course of its day-to-day business activities and the company’s assets will remain in excess of its liabilities,” he said.
Village added that it could repurchase a further 170.8-million shares in terms of the general shareholder authority granted on November 30, which was valid until the company’s next annual general meeting.