Goldplat extends share buyback programme
Aim-listed gold producer Goldplat has extended its share buyback programme.
Following the successful completion on April 8 of the share buyback programme initially announced on March 29, the company decided to extend the programme for the repurchase of its ordinary shares of £0.01 each for up to a further total value of £200 000.
In a statement on April 11, Goldplat said its board remained convinced that the company’s shares were trading at a significant discount to their intrinsic value, despite the strong operational and financial momentum of the business.
The company, therefore, continued to believe that share buybacks were an appropriate means of returning value, while maximising sustainable long-term growth for shareholders, given the enhancement to net asset value, earnings and dividends a share that would result from reducing the number of shares in issue.
The purpose of the share buyback programme was therefore aimed at reducing the issued ordinary share capital of the company.
The programme would expire on June 30 or when additional shares to the value of £200 000 have been bought back, whichever occurs first.
Goldplat has arranged for investment advisor WH Ireland to run and manage the programme, with WH Ireland having full discretion and entitlement to make independent trading and commercial decisions.
The maximum price at which ordinary shares may be bought will be 5% above the average of the middle market quotations for the ordinary shares as taken from the daily official list of the LSE for the five business days preceding the date of purchase. The minimum purchase price will be £0.01, which is the nominal value of the share.
Moreover, no more than about 17.2-million shares will be bought under the programme.
“While the company has launched the programme, there is no certainty on the volume of shares that may be acquired under the programme and the pace of acquisitions,” Goldplat cautioned.
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