Bloomberg News

BHP May Start Share Buyback After Trimming Spending, RBC Says

May 18, 2012

BHP Billiton Ltd. (BHP), the world’s biggest mining company, may start a new share buyback after this week trimming an $80 billion spending plan over five years, RBC Capital Markets said.

“We believe that the company may well embark on a modest buyback program if cash generation exceeds projected capital spending in a slower world economy,” Des Kilalea and Richard Hatch, London-based analysts at RBC, said in a report today.

The company won’t meet a spending target issued last year for building new mines and expanding operations as it sees prices falling, Chairman Jac Nasser said May 16.

Melbourne-based BHP completed a $10 billion buyback in Sydney and London last June, six months ahead of schedule. Ruban Yogarajah, a London-based spokesman for BHP, couldn’t immediately be reached for comment.

To contact the reporter on this story: Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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