Prosperity Minerals gets share buy-back underway

Prosperity Minerals gets share buy-back underway
Published: 22 July 2010

Prosperity Minerals Holdings Ltd has been engaged in on-market share buy-backs, purchasing over UK£1m of its own equity over the past two days. On Tuesday July 20th, the company bought 171,000 shares at 150p each, and then yesterday it bought 500,000 shares at 160p.

The company pledged to conduct a share buy-back programme, to return value to shareholders following its significant £300m asset sale earlier this year. In April the company sold most of its cement business to TCC International Limited for HK$3.8bn (approximately £300m).

In its Morning Note to investors, London-based stockbroker Daniel Stewart & Co said that the transactions are “another encouraging development for the shares as the company makes good on its word to engage in a buyback”.
Earlier this month, in its financial results for 2009, Prosperity reported a 31% increase in revenue to US$849m (FY09: $647.7m) and a 140% rise in pre-tax profit to US$18.5m (FY09: US$7.7m). The newly re-focused iron-ore trading business had a particularly significant year, in which it re-positioned itself following the cement asset disposals.
Since the cement asset sale, the company has also moved into the Chinese real estate development sector. In June Prosperity established a property development and investment division. The new business has already entered into agreement in relation to two separate property investments - in the Fujian Province in south-east China and in Guangzhou City.