Unlocking Value: A Look into Share Buybacks – A Win-Win Transaction for Companies and Investors
ENDEAVOUR ANNOUNCES TRANSACTION IN OWN SHARES
London, 18 December 2024 – Endeavour Mining plc (LSE:EDV, TSX:EDV) (“the Company”) announces it has purchased the following number of its ordinary shares of USD 0.01 each from Stifel Nicolaus Europe Limited.
Aggregated information
Dates of purchase: 17 December 2024
Aggregate number of ordinary shares of USD 0.01 each purchased: 42,000
Lowest price paid per share (GBp): 1,425.00
Highest price paid per share (GBp): 1,446.00
Volume weighted average price paid per share (GBp): 1,438.41
Following the cancellation of the repurchased shares, the Company will have no ordinary shares in treasury and 244,072,337 ordinary shares in issue.
Share buybacks have become a common practice among companies looking to unlock value for both themselves and their investors. This strategy involves a company repurchasing its own shares from the open market, thereby reducing the total number of outstanding shares. This can lead to an increase in earnings per share and, in turn, a boost in the company’s share price.
For companies, share buybacks can be seen as a way to signal confidence in their own stock. By repurchasing shares, a company is essentially stating that they believe their stock is undervalued and that investing in themselves is a wise decision. This can attract more investors and create a positive perception of the company in the market.
On the other hand, investors typically benefit from share buybacks in several ways. Firstly, it can lead to an increase in the value of their shares due to the decrease in the total number of outstanding shares. Additionally, it can provide a way for shareholders to cash out and realize their investment in the company. Furthermore, by boosting earnings per share, share buybacks can also attract new investors looking for profitable opportunities.
Overall, share buybacks can be a win-win transaction for both companies and investors. Companies can increase shareholder value and signal confidence in their stock, while investors can benefit from an increase in share value and potential returns on their investment.
How this will affect me:
As an investor, share buybacks can have a positive impact on your investment portfolio. By reducing the total number of outstanding shares, companies can increase the value of your shares and potentially provide higher returns in the long run. Additionally, share buybacks can signal confidence in the company’s stock, attracting more investors and creating a positive perception in the market.
How this will affect the world:
On a larger scale, share buybacks can have a ripple effect on the global economy. By boosting shareholder value and attracting investment, companies can drive economic growth and create a more stable market environment. This can lead to increased job opportunities, higher consumer confidence, and overall prosperity for the world economy.
Conclusion:
Share buybacks are a valuable strategy for companies looking to unlock value for both themselves and their investors. By repurchasing their own shares, companies can signal confidence in their stock, increase shareholder value, and attract new investors. Ultimately, share buybacks can be a win-win transaction that benefits both companies and investors, leading to positive impacts on individuals and the global economy.
