Gemstone miner Gemfields has started a share buy-back programme to buy up to $10-million worth of ordinary shares.
The share buy-back represents an opportunity to promote Gemfields' financial success and is a good use of surplus cash, on the basis that Gemfields is able to invest in itself at an attractive, low enterprise valuation and, simultaneously, enhance future earnings a share for the benefit of shareholders.
Gemfields has instructed financial services provider Investec to conduct the share buy-back.
The maximum price to be paid per share is to be no more than 10% above the volume-weighted average trade price on the JSE in the five business days preceding the date of any repurchase.
Gemfields, which is listed on the JSE and the LSE, owns majority stakes in the Montepuez ruby mine, in Mozambique, and the Kagem emerald mine, in Zambia.