Tuesday, April 26, 2016 10:46:11 AM
The mining contractor said the buyback was part of its capital management "at a time when the company’s shares are trading at a significant discount to their net tangible asset value".
Over the past 12 months, Macmahon shares have fallen more than 37 per cent, though year-to-date, they are only down 4 per cent. The share price rallied in June and July, pushing as high as 8.5c, but has since dropped around 20 per cent.
Investors have responded well to the buyback, however, sending shares 13.43 per cent higher to 7.6c, against a benchmark index lift of 0.33 per cent.
"The board believes the current share price does not reflect the fair value of the company, particularly in light of the company’s current cash reserves," Macmahon said in a statement today.
"The board therefore considers a share buy-back to be a sound use of available capital."
The buyback does not require shareholder approval and the earliest Macmahon will be able to purchase stock is October 21.
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM