Metals X (ASX: $MLX) share buy-back announcement

Metals X Limited (ASX: $MLX) has announced its intention to undertake an on-market share buy-back for up to 10% of the Company's issued capital as part of its capital management strategy. The buy-back will commence on or around 19 March 2024 and be undertaken over a twelve month period, unless completed or terminated earlier.

Executive commentary on share buy-back

The decision to implement an on-market share buy-back confirms the Board's confidence in the Company's strong balance sheet and aligns with our focus on balancing retained earnings for growth, potential acquisitions along with shareholder returns. We believe an on-market buy-back at this point is an effective method of returning surplus capital to shareholders, while also being earnings and value accretive. The buy-back will be conducted in the ordinary course of trading in accordance with the terms specified in the accompanying Appendix 3C. The Company is permitted to conduct the buy-back without shareholder approval.

Summary of Metals X (ASX: $MLX) share buy-back announcement

Metals X Limited (ASX: $MLX) has announced an on-market share buy-back for up to 10% of the Company's issued capital, demonstrating confidence in its strong balance sheet. The buy-back is part of the Company's capital management strategy, aiming to balance retained earnings for growth, potential acquisitions, and shareholder returns. The Company believes the buy-back will effectively return surplus capital to shareholders while being earnings and value accretive. The buy-back will commence on or around 19 March 2024 and be conducted over a twelve month period, subject to market conditions and the Company's discretion. As at 31 December 2023, the Company had a cash balance of $143.04m, and a buy-back of 10% of the Company's issued capital would cost circa $26.76m at the last closing share price. The Company is permitted to conduct the buy-back without shareholder approval.