Perseus Mining shares rally on expanded buyback program
Shares in West African-focused gold producer Perseus Mining (ASX:PRU) rallied during afternoon trade, jumping 8.2% to $5.28.
The spike followed an announcement that the company has expanded its active on-market share buyback programme to $150 million.
The capital management move immediately succeeded the closure of its previous $100 million tranche, which concluded after the miner repurchased 19,077,751 shares at an average price of $5.24 per share.
Backed by robust cash generation from its operating asset portfolio, the Perseus board subsequently approved an additional $50 million allocation to the programme.
While future repurchases remain strictly subject to prevailing market conditions, the decision highlights the board's deep confidence in the miner's balance sheet strength and sustainable free cash flow.
Managing Director and CEO Craig Jones stated that expanding the buyback emphasises a disciplined approach to capital allocation and a clear focus on total shareholder returns.
Jones added that because current market conditions continue to undervalue Perseus's high-margin production profile and organic upside, buying back equity serves as a highly accretive use of corporate capital while still preserving the liquidity required to fund its pipeline of organic growth initiatives.
