Triple-listed diversified miner South32 has suspended the remaining $121-million of its current on-market share buy-back programme and has lowered its sustaining capital expenditure (capex) guidance for the 2020 financial year to $500-million as the miner moved to conserve cash amid the outbreak of Covid-19.
Sustaining capex will be cut by $150-million while exploration expenditure will be cut by $10-million.
“We have responded to the Covid-19 pandemic by introducing a number of measures aligned to our priorities of keeping our people safe and well, maintaining reliable operations and supporting our communities,” said CEO Graham Kerr on Monday.
“We have acted to protect our strong financial position, reducing capital and exploration expenditure, suspending our on-market share buy-back and commencing a group-wide review aimed at delivering a reduction in controllable costs.”
South32 has also removed the guidance for its operations in South Africa and Colombia following the nation-wide lockdown of both these countries, while production expectations from the Australian manganese assets have been lowered by 5% in response to restrictions aimed at containing the spread of Covid-19.