Forbes Coal in shares buyback

[miningmx.com] — FORBES Coal said on Wednesday it would buy up to 5% of its own shares, a move prompted by the group’s prevailing low market valuation.

Forbes would ask the Toronto Stock Exchange for approval for the buyback, but said the eventual number of shares to be purchased would depend on market conditions and its cash position.

“The company believes that the underlying value of Forbes Coal is not reflected in the current market price of its common shares,’ said Stephan Theron, CEO of Forbes Coal.

“We believe that in light of the current share price, the [buyback] is currently one of the best uses of our capital and is in the best interests of our shareholders.’

The buyback would be done over a one-year period, by way of open market purchases, starting on April 30 this year.