Share and GDR Buyback
2016 Buyback Programme
On November 17, 2015, the Board approved new GDR buyback programme for up to 5,000,000 GDRs to a maximum total amount of US$15 million at a price of up to US$5.0 per GDR. The buyback programme will end as soon as the aggregate purchase price of GDRs acquired by the Company has reached the amount of US$15 million or ultimately, by November 17, 2016.
The Board and management consider return of capital to the shareholders in the form of share and GDR repurchase to be a good supplement to stable dividend payments. Moreover, they are confident the Company’s shareholder value will appreciate as more investors understand Nordgold’s operational track record and strong growth pipeline and the structure of the minority shareholder base improve.
We remain fully committed to being a public company and to the long-term aim of significantly increasing the Company’s freefloat.
The buyback programme is carried out in accordance with the conditions of the authorisation granted by the General Meeting of Shareholders of the Company to acquire shares and GDRs on January 30, 2015. It is intended to reduce the capital of the Company by cancelling the treasury shares/GDRs.
After the repurchase of GDRs under this buyback programme and following the withdrawal from the GDR programme in exchange for shares, the Company shall be authorised to cancel the shares.
2015 Buyback Programme
On February 24, 2015, the Board approved a share and GDR buyback programme for up to 19,000,000 shares/GDRs to a maximum total amount of US$30 million at a price of up to US$4 per share/GDR.
In 2015 Nordgold purchased a total of 10,282,212 GRDs for the total amount of US$29,295,901. 2015 buyback programme ended on December 31, 2015.