27th Mar 2020 06:59
(Alliance News) -Â South32 Ltd on Friday suspended its share buyback and said it is hoping to cut spending by USD160 million.
"As Covid-19 impacts people across the world including the countries in which we operate, we remain focussed on keeping our people safe and well, maintaining safe and reliable operations, and supporting our communities. At the same time, we are taking action to maintain the financial strength of our business in response to a rapidly evolving environment," said Chief Executive Graham Kerr.
The lower expenditure comprises a USD150 million reduction in capital expenditure and a further USD10 million in exploration activity over the next 15 months.
The miner said its balance sheet remains strong, with net cash of USD277 million at the end of 2019, including cash and cash equivalents of USD1.4 billion, no term debt and an undrawn USD1.5 billion revolving credit facility.
"The prudent management of our strong balance sheet will continue through our disciplined allocation of capital consistent with our unchanged capital management framework. Since demerger, we have returned USD2.9 billion to our shareholders by way of ordinary dividends and our capital management program. The disciplined approach we continue to take to capital allocation and our simple capital management framework ensures our shareholders will be rewarded as financial performance improves," said Kerr.
In addition, South32 has suspended the remaining USD121 million of its current share buyback.
By Lucy Heming;Â [email protected]
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