OceanaGold initiates share buyback programme
Toronto-listed OceanaGold has announced the launch of a share buyback programme following approval from the TSX.
This initiative allows OceanaGold to repurchase up to 35.5-million common shares over the next 12 months under a normal course issuer bid (NCIB), representing about 5% of the company's outstanding shares.
As of July 18, OceanaGold had a total of 711 239 778 common shares issued and outstanding. The buyback programme, conducted through the facilities of the TSX or alternative Canadian trading systems, aims to enhance shareholder value by leveraging current market conditions.
“With the balance sheet further strengthened following the recent completion of the Didipio IPO and Blackwater sale, the initiation of a share buyback programme is consistent with our capital allocation framework. With the free cash flow we expect to deliver in the coming years and today’s strong metal prices, the company is well positioned to continue funding our attractive organic growth projects, maintain a strong balance sheet and the current dividend, and increase returns to shareholders via a buyback,” said president and CEO Gerard Bond.
To facilitate efficient execution of the NCIB, OceanaGold has implemented an automatic share purchase plan with a designated broker. The plan allows for the repurchase of common shares during blackout periods when the company would typically be restricted from trading.
Under the terms of the NCIB, which starts on July 24, OceanaGold is authorised to purchase shares daily up to a maximum of 361 487 common shares. This daily limit represents 25% of the average daily trading volume of 1 445 951 common shares over the six-month period ended June 30, 2024.
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