Stanmore launches share buy-back
PERTH (miningweekly.com) – Coal developer Stanmore Coal on Tuesday announced that it would initiate an on-market share buy-back for up to 10% of the company’s issued share capital.
The buy-back of about 20.9-million shares was designed to strengthen Stanmore’s capital position and demonstrated the board’s strong belief in the underlying value of the company, Stanmore said in a statement.
The share buy-back formed part of the company’s capital management strategy.
“The buy-back reflects Stanmore’s strong cash balance in poor market trading conditions at a cyclical low point in the coal market. Importantly, it will see the company retain the vast majority of its significant cash reserves for ongoing project development and retain the ability to pursue valuable growth opportunities,” said Stanmore MD Nick Jorss.
The share purchase price would be no more than 5% above the volume weighted average share price of the company’s shares over the five days prior to purchase.
The buy-back period would start in two weeks and would last for no more than 12 months.
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