Petmin to continue share buy-back

[miningmx.com] – ANTHRACITE miner, Petmin, said it would continue to buy-back shares in its 2016 financial year as the firm’s management believed the share was under-valued.

The company was commenting in its full-year results review for the 2015 financial year in which headline earnings came in 62% higher at 24.28 cents per share owing to a strong performance of its Somkhele mine in South Africa’s KwaZulu-Natal province.

Petmin bought about 28.5 million shares equal to 5.69% of total shares in issue. The average purchase price was R1.53 per share. The company is currently trading at R1.36/share valuing the firm at R773m.

It also said that it would increase its stake in North Atlantic Iron Corporation (NAIC), a pig iron development company operating in North America, to 40% this year after buying up a further 2% of the entity, equal to R29m in investment, last year. It currently owns 35% of NAIC.

However, plans to float NAIC in Johannesburg had been postponed indefinitely owing to market volatility.