Global mining services firm Perenti (ASX:PRN) has renewed a 12-month on-market share buyback program following the conclusion of the previous program on 30 August 2024.
CEO Mark Norwell says the $981.13 million market capitalisation company’s continuation of the buyback program allows Perenti to purchase shares on-market when the company deems appropriate.
“In FY25, our focus continues to be on generating value to our shareholders through disciplined allocation of capital to organic growth, gross debt reduction, on-market share buyback program, and the recently announced new dividend policy,” the CEO says.
The exact timing and number of shares purchased under the program will consider factors which may include market conditions, available trading windows, the prevailing share price, and liquidity requirements.
Perenti’s share price was trading at $1.055 as of 1pm AEDT today (7 October).
The option of an on-market buyback is available to Perenti because of the scale that has been built in the business during recent years, the company reports.
“This scale has delivered reliable free cash flow, most recently demonstrated by $184 million of free cash flow in the FY24 results,” the company says, adding it’s important to recognise that Perenti defines free cash flow as operating cash flow after interest, after tax, and after all capital expenditure.
Free cash flow is forecast to be more than $150 million in FY25, providing sufficient capacity for this buyback program.
From origins in Kalgoorlie in the 1980s, Perenti has grown into one of the largest mining services companies in the world that offers both surface and underground mining solutions at scale.
It has offices and operations spanning four continents and a global workforce of 11,000 employees.
Write to Adam Orlando at Mining.com.au
Images: ASX& Perenti
