US China Mining on share repurchase path

CHINESE coal production and exploration player US China Mining Group’s board has authorised a share repurchase plan under which the company will buy back 500,000 of its shares.
US China Mining on share repurchase path US China Mining on share repurchase path US China Mining on share repurchase path US China Mining on share repurchase path US China Mining on share repurchase path

 

Noel Dyson

Under the plan, it will buy the shares back over a period of nine months to help bolster its share price.

US China Mining plans to fund repurchases made under the plan from its existing cash balance.

All shares bought back under the plan will be held as treasury shares.

“We believe the current price of our company severely undervalues our company and the board’s decision to implement the share repurchase plan reflects its strong belief in the strength of our business,” US China Mining chief executive officer Hongwen Li said.

“Although we are facing some unprecedented challenges in our current operations, the company will continue in our long-term growth strategy through upgrading our existing mines and capitalising on the potential acquisition of a mine in Guizhou.

“At the present time our strong balance sheet and prepaid mining rights on the reserve lead us to believe this share repurchase plan represents an effective use of our cash and is in the best interests of our shareholders.”

US China Mining is producing coal from properties in the People’s Republic of China.

Its business consists of the operations of the Tong Gong coal mine in northern China, located about 175 kilometres southwest of the city of Heihe in the Heilongjiang Province and the Hong Yuan and Sheng Yu coal mines in the city of Mohe – also in Heilongjiang.

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