Lemur continues share buy-back to restore value
JOHANNESBURG (miningweekly.com) – Madagascar-focused Lemur Resources, in which mineral asset developer Bushveld Minerals holds a controlling stake, has continued its share buy-back programme, informing the ASX on Tuesday that it had bought more shares.
The company embarked on an on-market buy-back for up to 10% of its issued capital in November last year, stating that it did not believe its current share price reflected its “strong” underlying cash position and value of the company’s assets.
Lemur believed the buy-back 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,” CEO Anthony Viljoen said at the time.
The company owns several coal assets in Madagascar, including the Imaloto project, which had a 135.7-million-ton mineral resource.
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