Eldorado Gold Enhances Its Share Buyback Program
In a strategic move, Eldorado Gold Corporation announces a significant amendment to its normal course issuer bid (NCIB). This update, accepted by the Toronto Stock Exchange (TSX), will be implemented on May 6. The amendment is a testament to the company’s commitment to reflecting its long-term value in the stock market.
Details of the Amended Normal Course Issuer Bid
The newly approved amendment raises the threshold for the maximum number of common shares the company can repurchase, increasing from 350,000 shares to an impressive 10,245,474 shares. This represents about 5% of the total shares issued and outstanding. The company aims to use these repurchases to not only manage its stock effectively but also to enhance shareholder returns.
Purchases Under the NCIB
The repurchase program officially commenced on November 8 and is set to conclude by July 31. To date, Eldorado has successfully repurchased 224,000 shares at an average price of $22.60 per share. There are plans in motion to renew the NCIB for an additional year upon its expiration, marking the company's proactive approach towards shareholder engagement.
Market Strategy and Financial Strength
Eldorado's leadership believes that the share price does not always reflect the underlying value of the company. They are confident that repurchasing shares during this high gold price environment is a prudent use of its financial resources, especially given the robust state of their balance sheet and ongoing developments at their Skouries Project.
Operational Framework for Share Purchases
The company plans to execute these purchases at prevailing market prices through the TSX and alternative trading systems. Daily limits on share repurchase quantities have been set to not exceed 83,123 shares. Interestingly, a portion of the shares repurchased will be held for the company's restricted share unit (RSU) plan, indicating a thoughtful strategy towards employee incentives.
Flexibility and Market Responsiveness
Eldorado Gold is committed to making purchases when it is in the company's best interest. The company has implemented an automatic repurchase plan with its broker to ensure it can execute these buybacks even during predetermined blackout periods. This flexibility allows for timely market opportunities while adhering to TSX regulations.
About Eldorado Gold
Eldorado Gold is not just a gold producer but also a valued player in base metals with operations spanning Türkiye, Canada, and Greece. The company prides itself on having a dedicated workforce, a portfolio bolstered by quality assets, and meaningful partnerships with local communities. Its common shares are listed on both the TSX and the New York Stock Exchange under the tickers TSX:ELD and NYSE:EGO.
Contact Information
Investor Relations
Lynette Gould, VP, Investor Relations, Communications & External Affairs
For any inquiries, you may reach out at 647-271-2827 or 1-888-353-8166. Alternatively, contact Lynette at lynette.gould@eldoradogold.com.
Media Relations
Chad Pederson, Director, Communications and Public Affairs
To get in touch, please dial 236-885-6251 or 1-888-353-8166. You can also contact Chad at chad.pederson@eldoradogold.com.
Frequently Asked Questions
What is the purpose of Eldorado Gold's NCIB amendment?
The amendment allows Eldorado to repurchase more shares, enhancing shareholder value and reflecting long-term value in the market.
How many shares can Eldorado Gold repurchase under the new NCIB?
With the amendment, the company can repurchase up to 10,245,474 common shares.
What has been the average price for shares repurchased so far?
To date, Eldorado has repurchased shares at an average price of $22.60 each.
When does the current NCIB program end?
The current NCIB program is set to conclude by July 31.
Which stock exchanges list Eldorado Gold's shares?
Eldorado Gold's shares are listed on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
