LONDON (ShareCast) - (Sharecast News) - South African gold producer Pan African Resources began the first phase of a share buyback programme on Friday, to purchase up to ZAR 50m (£2.6m) of shares back over one month.
The AIM-traded firm's board said it believed that at the current price, its shares offered "significant value", given the "quality and profitability" of its existing operations and growth projects.

Its directors said they had thus decided to implement a share buyback programme as part of its broader strategy to deliver value to shareholders.

"The company has a demonstrable track record of circumspect capital allocation and this share buyback is compelling in its returns for shareholders, given the prevailing share price," said chief executive officer Cobus Loots.

"Although it's a small initial buyback, it signals that the company is prepared to consider share buyback as a means of returning capital to shareholders, when it is commercial to do so."

At 1410 BST, shares in Pan African Resources were up 1.05% at 22.64p.

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