INTREPID MINES SIGNALS SHARE BUY-BACK
Written on the 2 March 2015
INTREPID Mines Limited (ASX:IAU) has signalled its intention to undertake an on-market buy-back of up to 20 per cent of the company's shares.
The minerals exploration and development company will request shareholder approval at its Annual General Meeting (AGM) in May.
The announcement follows a review of IAU's forward program and budget for its Kitumba copper project in Zambia, which factors in copper market conditions.
The company says it is becoming increasingly difficult to attract investors based on the current copper price, but remains optimistic about price increases in the long term.
Intrepid chairman Ian McMaster says the buy-back will be the best option to raise capital.
"Seeking shareholder approval to buy back shares is a prudent capital management response to a significant softening of the copper price and weakness in the small-cap equities market, where companies such as Intrepid are undervalued," McMaster says.
"Exactly how many shares within the approved limit will be bought back, and over what timeframe, will depend on a range of factors.
"However, I am very pleased that we have sufficient cash reserves to be in a position to take this action while continuing to take the company forward and progress the Kitumba project in a measured way."
The company must seek shareholder approval after a $110 million buy-back was already implemented in December 2014, in relation to the merger with Blackthorn Resources Limited.
If shareholder approval is granted, IAU will consider market conditions, business development opportunities and its cash position before commencing the buy-back.