West African miner Perseus extends buy-back

SHARES in Perseus Mining surged over 8% on Monday after the West African gold miner approved a A$50m increase in its share buy-back programme.This was after completing A$100m in purchases of its shares during the last 12 months. Shares in Perseus are just over 5% weaker year-to-date but 45% higher over the last year. The firm’s shares were also boosted by a 2% higher gold price in the wake of an agreement between the US and Iran on reopening the Strait of Hormuz.Since August 2024, Perseus has bought about 45.1 million shares totalling A$183.5m at an average price of A$4.07 per share, equal to about 3.3% of total shares in issue. The gold miner’s share is currently trading at A$5.31/share.Perseus said the upsized buy-back showed confidence in its balance sheet and the ability of operations to generate “market-leading” free cash flow, while continuing to fund its organic growth pipeline.“Given the current market conditions continue to undervalue our high-margin production profile and organic upside, buying back our own shares represents a highly accretive use of capital,” said Perseus Mining MD Craig Jones.Perseus has a track record for using capital to fund aggressive merger and acquisitions activity. In April, it announced a 9.9% investment in Aurum Resources for A$23.7m, a company that operates near Bagoé, a satellite operation of Perseus’s Sissingué Gold Complex in Côte d’Ivoire.Four months earlier it terminated a proposed A$2.1bn takeover proposal for Predictive Discovery, another West African gold miner.Spot gold climbed 2.5% to $4,323/oz earlier today, hitting its highest level since June 9 and extending gains for a third straight session, said Reuters. US gold futures for August delivery rose 2.5% to $4,343.80/oz.“Lower oil prices and a softer dollar, stemming from reduced geopolitical risk and the anticipated reopening of the Strait of Hormuz, are helping to calm inflation expectations,” Tim Waterer, chief market analyst at KCM Trade told the newswire.“This combination is providing the precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be,” he said.The post West African miner Perseus extends buy-back appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com