Dundee Precious Metals Advances Share Buyback Strategy
Dundee Precious Metals Initiates New Normal Course Issuer Bid
Dundee Precious Metals Inc. (TSX: DPM) recently announced its plan to renew its normal course issuer bid (which we will refer to as the "New Bid"), allowing the company to repurchase its common shares on the Toronto Stock Exchange ("TSX"). This strategic decision highlights the company’s commitment to enhancing shareholder value.
Significance of the New Bid
The New Bid is set to start on March 18, 2025, and will conclude on March 17, 2026. The company aims to buy back up to 15 million shares, which reflects approximately 9.8% of its public float. This is a proactive approach, as it allows Dundee Precious Metals to manage its capital and support its stock price amidst market fluctuations.
Understanding Share Repurchase Dynamics
Previously, the Company engaged in its prior bid, the "Previous Bid," which commenced on March 18, 2024, and is set to end soon. Throughout this period, Dundee Precious Metals managed to repurchase over 11 million shares at an average price of US$9.57 (Cdn $13.51) each. They are keen to continue this momentum with the New Bid, providing flexibility in handling shares within the trading frameworks established by TSX.
Details of Share Repurchase Limits
Under the guidelines of the New Bid, the company will not acquire more than 103,112 shares on any given trading day. This limit equates to 25% of its average daily trading volume from the preceding six-month period, which was 412,450 shares. Such measures ensure a disciplined buyback approach without significantly impacting the market.
Share Purchase Plan Implementation
Dundee Precious Metals has taken steps to establish an automatic share purchase plan ("ASPP") tied to the New Bid. This plan allows the company to make purchases even during specific times when it normally wouldn't be able to due to regulatory reasons. This foresight ensures that the company can continue repurchasing shares without disruption during black-out periods.
Partnership with Financial Advisors
To facilitate the execution of the New Bid, Dundee Precious Metals has re-appointed RBC Capital Markets as its purchasing agent. The timing of repurchases will be influenced by numerous factors, including the company's current share price and strategic priorities. This partnership reinforces the company’s intention to ensure liquidity while maximizing shareholder returns.
About Dundee Precious Metals
Dundee Precious Metals Inc. is a forward-thinking mining company that operates gold mining projects in various countries including Bulgaria and Serbia. The organization strives to establish itself as a mid-tier precious metals entity, committed to sustainable and efficient mining practices. By building a portfolio of high-quality assets and ensuring a solid financial foundation, Dundee aims to secure long-term growth and provide robust returns for its investors.
Contact Information
For additional inquiries, please reach out to:
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
jcameron@dundeeprecious.com
Frequently Asked Questions
What is the purpose of the New Bid?
The New Bid allows Dundee Precious Metals to repurchase its shares, which can enhance shareholder value and stabilize the stock price.
When does the New Bid commence?
The New Bid is set to start on March 18, 2025, and will run until March 17, 2026.
How many shares can Dundee Precious Metals repurchase?
The company intends to buy back up to 15 million shares under the New Bid.
What factors influence share repurchase timing?
The timing is affected by the company's share price, financial condition, and a disciplined approach to capital allocation.
Who manages the share repurchase process?
Dundee Precious Metals has appointed RBC Capital Markets to oversee the purchase of shares under the New Bid.
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