S32CD South 32 Limited

   By David Winning 
 

SYDNEY--South32 Ltd. has suspended its share buyback program and will cut around US$160 million in spending over the next 15 months as it responds to the coronavirus pandemic.

South32 said the decision to ice the buyback was taken with US$121 million remaining. Still, the mining company said there would be an opportunity to extend the buyback program ahead of its expiry on September 4.

"Our financial priorities remain unchanged, and today's actions, including the suspension of our on-market share buyback, are a prudent response to the current exceptional circumstances and consistent with our commitment to maintain a strong financial position," said Chief Executive Graham Kerr.

South32 said US$150 million in planned capital expenditure to sustain its operations won't now happen, representing a 10% cut in the year through June and an 18% reduction in the 2021 fiscal year. It would also seek to cut US$10 million from its budget for exploring for new deposits of metals and minerals.

Management said it is reviewing activity to find ways to cut controllable costs meaningfully. "We expect to see the benefit of this work and lower producer currencies reflected in our FY 2021 operating unit cost guidance," the company said in a regulatory filing.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

March 26, 2020 19:30 ET (23:30 GMT)

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