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UPDATE 1-Implats suspends share buy-backs, reviewing capex

Thu Nov 20, 2008 9:29am EST

Stocks

   

* Implats reviewing capital expenditure plans

* Suspends share buy-back programme

* Shares extend losses (Adds share price, details)

JOHANNESBURG, Nov 20 (Reuters) - Impala Platinum (Implats) (IMPJ.J), the world's second biggest platinum producer, said on Thursday it had suspended its share buy-back programme and would review all its capital expenditure plans.

Implats said in a statement that "cash preservation" was the firm's main focus. Implats said it would review its ongoing expansions at the Marula Merensky and Leeuwkop projects in South Africa, which amounted to 9.7 billion rand ($916 million) in its five year 30 billion rand capital expenditure plan.

By Wednesday, Implats said it had completed 18.6 percent of the share buy-back programme amounting to 5.5 million shares at a cost of 723.8 million rand.

"Given the current global financial crisis and economic downturn, the rapid decline in platinum group metal prices coupled with lower cash receipts and the increased volatility within the capital markets, Implats has suspended its share buy-back programme," the company said.

It said it would keep the market informed of further developments, a day after it said it could not proceed with its friendly bid to buy Mvelaphanda Resources (Mvela) (MVLJ.J) and its unit Northam Platinum (NHMJ.J) under terms it had previously proposed. (Reporting by James Macharia)



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