REG - Goldplat plc - Share buy-back programme

GoldplatAnnouncement

29/03/2022 07:00

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RNS Number : 3074G  Goldplat plc  29 March 2022

 

 

 

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining
& Exploration

 

 

29 March 2022

 

 

Goldplat plc

('Goldplat', the 'Group' or 'the Company')

 

Share buy-back programme

 

 

Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South
Africa and Ghana, is pleased to announce the launch of a share buy-back
programme (the "Programme").

 

As previously announced, with the changes in strategy of the business to focus
on the recovery operations, the intention of the Board is to distribute free
cashflow generated in these operations back to shareholders, subsequent to
regular reviews of capital allocations to optimise long-term returns for
shareholders. The Board considered returning value to shareholders either
through dividends or as a share buy-back. It is the Board's opinion that the
Company's shares currently trade at significant discount to its intrinsic
value per share, despite the strong operational and financial momentum of the
business. The Board therefore believes that share buybacks are an appropriate
means of returning value, whilst maximising sustainable long-term growth for
shareholders, given the enhancement to net asset value, earnings and dividends
per share that will result from reducing the number of shares in issue. The
purpose of the Programme is therefore to reduce the issued ordinary share
capital of the Company.

 

Accordingly, the Company today announces the commencement of the Programme,
for the repurchase of its ordinary shares of one penny each ("Ordinary
Shares") of up to a total value of £200,000. The Programme can commence from
the date of this announcement and will expire at 30 June 2022, or when shares
to the value of £200,000 have been bought back, if earlier.  The Company has
an arrangement with WH Ireland Limited ("WH Ireland") to run and manage the
Programme and WH Ireland will have full discretion in relation to the
Programme, within the parameters set out below, and are entitled to make
independent trading and commercial decisions regarding the Programme.

 

Any purchase of Ordinary shares will be executed in accordance with the limits
of the Company's general authority to

repurchase Ordinary shares granted by its shareholders at the Company's 2021
Annual General Meeting on 31 December 2021

·    The maximum price at which Ordinary Shares may be purchased shall be
5 percent above the average of the middle market quotations for the Ordinary
Shares as taken from the Daily Official List of the London Stock Exchange for
the five business days preceding the date of purchase and the minimum price
shall be £0.01, being the nominal value of the Ordinary Shares

·    No more than 17,210,766 will be repurchased under the Programme.

 

It is intended that the Programme will be effected as far as possible in
accordance with the Market Abuse Regulation 596/2014/EU (as in force in the UK
and as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019).
Given the level of liquidity in the Company's shares, Shareholders should be
aware that a purchase of Ordinary Shares by the Company on any given trading
day may represent a significant proportion of the daily trading volume in the
Goldplat Ordinary Shares and could exceed 25 per cent of the average daily
trading volume in the month preceding this announcement. The trading volume
however will be limited to 50% of the average daily trading volume in the
month preceding this announcement, which was circa 350,000 shares.

 

Under the terms of the agreement, WH Ireland will make purchases of the Shares
under the buy-back programme independently of, and uninfluenced by, the
Company. Purchases may continue during any closed period to which the Company
is subject. The Company confirms that it currently has no unpublished inside
information.

 

All shares repurchased under the Programme will be cancelled.

 

The Board will keep the Programme under review to make sure it continues as an
efficient and effective means of generating value for shareholders. While the
Company has launched the Programme, there is no certainty on the volume of
shares that may be acquired under the Programme and the pace of acquisitions.

 

The Company will make further announcements in due course following the
completion of any buyback of shares.

 

For further information visit www.goldplat.com, follow
on Twitter @GoldPlatGDP or contact:

 

 Werner Klingenberg                                 Goldplat plc                                     Tel: +27 (0) 82 051 1071

                                                    (CEO)

 Colin Aaronson / George Grainger / Samuel Littler  Grant Thornton UK LLP                            Tel: +44 (0) 20 7383 5100

                                                    (Nominated Adviser)
 Jessica Cave / Andrew de Andrade                   WH Ireland Limited                               Tel: +44 (0) 207 220 1666

                                                    (Broker)

 Tim Thompson / Mark Edwards / Fergus Mellon        Flagstaff Strategic and Investor Communications  Tel: +44 (0) 207 129 1474

                                                                                                     goldplat@flagstaffcomms.com

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

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