The Perseus Mining Ltd (ASX: PRU) share price is in focus after the company announced an increase of its on-market share buy-back to A$150 million, having already completed A$100 million in purchases. Perseus has now repurchased more than 45 million shares since August 2024, highlighting its strong cash generation and commitment to returning capital to shareholders.
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What did Perseus Mining report?
- On-market buy-back increased by A$50 million to a new total of A$150 million
- Over A$100 million of shares already repurchased under the latest buy-back
- 45,076,176 shares bought back since August 2024 at an average price of A$4.07 per share
- Buy-backs now comprise around 3.3% of shares on issue at maiden buy-back announcement
- Board cites market-leading free cash flow as key to funding both buy-backs and growth
What else do investors need to know?
The expanded share buy-back signals the Board's confidence in Perseus' financial position and outlook. The company has indicated that the timing and pricing of further share repurchases will depend on market conditions, and retains the option to suspend or end the programme at any time.
Perseus says the decision fits within its Capital Allocation Framework and aims to balance shareholder returns with the funding needs of its organic growth pipeline. The repurchases are being made in accordance with ASX Listing Rules and the Corporations Act.
What did Perseus Mining management say?
Managing Director & CEO Craig Jones said:
The decision to expand our on-market buyback to A$150 million emphasizes our clear focus on total shareholder return and capital allocation discipline. Our operations continue to produce solid and sustained cash flows. 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. This expansion allows us to efficiently return value to our shareholders while preserving our strong balance sheet to execute our corporate growth initiatives.
What's next for Perseus Mining?
Looking ahead, Perseus plans to continue balancing capital returns with growth investments. Management remains focused on leveraging strong free cash flow to return value to shareholders, while maintaining financial flexibility for further growth initiatives.
Investors can expect ongoing updates on the buy-back's progress and any developments impacting the company's growth pipeline or capital management strategy.
Perseus Mining share price snapshot
Over the past 12 months, Perseus Mining shares have risen 29%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
