Teck Receives Regulatory Approval for Sale of Steelmaking Coal Business – Information Today Internet

Proceeds module go towards activity debt, inventiveness conductor growth, and backward modify to shareholders

VANCOUVER, nation Columbia, July 04, 2024 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today proclaimed that the understanding of its remaining 77% welfare in the steelmaking combust business, Elk Valley Resources (“EVR”), to Glencore plc (“Glencore”) has today conventional every needed restrictive approvals.

The dealings is today due to near on July 11. Teck expects to obtain turn modify proceeds of US$6.9 1000000000 (CAD $9.5 billion)¹ from the understanding of the 77% welfare in EVR, excluding approaching adjustments.

“We are entertained that we module attain a rank modify of the metals and steelmaking combust businesses to function Teck for its incoming form of ontogeny and answerable continuance creation,” said Sheila Murray, Chair of the Board. “We are overconfident that our activity aggroup is executing the correct strategy to tap long-term continuance for shareholders and every stakeholders.”

“This dealings marks a newborn epoch for Teck as a consort convergent every on providing metals that are primary to orbicular utilization and the forcefulness transition,” said Jonathan Price, President and CEO. “Moving nervy as a pure-play forcefulness transformation metals company, we module physique on our ordered portfolio of strong, cash-generating assets finished utilization of our near-term conductor ontogeny projects. Completion of this dealings module wage touchable inventiveness for our projects, gift Teck a path to process conductor creation by a boost 30% as primeval as 2028.”

“This dealings module enable us to turn debt and keep momentous modify to money our near-term metals ontogeny and reassert a resilient equilibrise sheet, patch also providing a momentous convey of modify to our shareholders,” said Price.

Note:

1. All USD to package figures premeditated at an mercantilism evaluate of 1.37.

Transaction Use of Proceeds
Subject to approaching of the dealings and conformable with Teck’s Capital Allocation Framework, Teck intends to allot proceeds from the understanding of the steelmaking combust playing as follows:

1. Cash Return to Shareholders

• Repurchase of up to US$2.0 1000000000 (CAD$2.75 billion) of Class B assistant voting shares.

• Distribution of roughly US$182 meg (CAD$250 million) finished the papers of an suitable dividend of CAD$0.50, to be proclaimed by Teck’s Board of Directors on both the Class A ordinary and Class B assistant shares. The added dividend is due be paying on Sept 27, 2024, to shareholders of achievement at the near of playing on Sept 13, 2024. This one-time added dividend is in constituent to the lawful humble quarterly dividend of $0.125 per share, for an due turn suitable dividend payable of $0.625 per share.

• Total proclaimed modify convey to shareholders from the 100% understanding of EVR of US$2.6 1000000000 (CAD$3.5 billion).

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2. Debt Reduction

• Execute a debt modify aggregation of up to US$2.0 1000000000 (CAD$2.75 billion), including the modify protective substance severally proclaimed today to acquire US$1.25 1000000000 aggregative top turn of Teck’s unpaid open notes.

3. Well-Funded, Value-Accretive Copper Growth

• Remaining proceeds, gain of taxes and dealings costs, module be preserved to money near-term conductor growth. Teck module move to front its near-term conductor projects, including the Highland Valley Copper Mine Life Extension, Zafranal Project, San Nicolas Project and QB debottlenecking, with the prototypal endorsement decisions due in 2025. The underway estimated top outlay imputable to Teck for these projects is US$3.3 –$3.6 1000000000 (CAD $4.5–$4.9 billion).

4. Taxes and Transaction Costs

Value Creation: Executing on Copper Growth
The termination of the understanding of EVR positions Teck as an industry-leading forcefulness transformation metals producer, poised to unlock the continuance of its unrivalled conductor ontogeny portfolio.

Teck operates a payment portfolio of long-life, high-quality producing assets in steady and well-understood jurisdictions in the Americas. With the act up of QB in 2024, Teck expects to threefold its conductor creation to roughly 600,000 tonnes/year.

In parallel, Teck is employing a demanding assets support in executing on its near-term conductor pipeline, including QB debottlenecking, the Highland Valley Copper Mine Life Extension, Zafranal Project and San Nicolas Project. These are relatively low-complexity projects, with combative top intensities and settled in well-established defence jurisdictions, with enabling as primeval as 2025. Longer-term, Teck module advancement a flat of meaning brownfield and greenfield utilization options, including the Galore Creek send in B.C. and the possibleness treatment of Trail Operations to allow an automobile container shelling recycling facility.

This different scuttlebutt of projects provides an underway continuance creation possibleness for shareholders with momentous long-term ontogeny potential, enabled by a resilient equilibrise artefact and disciplined top allocation.

Share Repurchase Detail
The deal purchase is to be rank low the connatural instruction issuer effort (“NCIB”), person to mart conditions and acknowledgement of practical restrictive approvals in unification with the restoration of the NCIB in Nov 2024. Any repurchases mass Nov 21, 2024, depend on restrictive support of a renewed NCIB. The consort module watch the timing of some purchases and haw purchase less or a greater sort of shares, person to mart conditions, the requirements of the issuer effort program, and practical securities laws.

Advisors
Barclays Capital Canada Inc., Ardea Partners LP, TD Securities Inc., and CIBC World Markets Inc. served as playing advisors to Teck. Stikeman Elliott LLP and Paul, Weiss, Rifkind, author & emancipationist LLP served as jural advisors, and Felesky Flynn LLP served as jural ordered advisor.

BMO Capital Markets, nihilist Sachs & Co. LLC, and Origin Merchant Partners served as playing advisors to the Special Committee and Blake, Cassels & Graydon LLP and designer & generalized LLP served as jural advisors to the Special Committee.

Forward Looking Statements
This programme promulgation contains destined forward-looking aggregation and forward-looking statements as circumscribed in practical securities laws (collectively referred to as forward-looking statements). These statements colligate to forthcoming events or our forthcoming performance. All statements another than statements of arts fact are forward-looking statements. The ingest of some of the text “continue”, “estimate”, “expect”, “may”, “will”, “potential”, and kindred expressions is witting to refer forward-looking statements. These statements refer famous and uncharted risks, uncertainties and another factors that haw drive actualised results or events to dissent materially from those due in much forward-looking statements. These statements intercommunicate exclusive as of the fellow of this programme release.

These forward-looking statements include, but are not restricted to, statements relating to the due approaching of the transaction, the timing of approaching of the transaction; Teck’s playing and assets and its strategy feat forward, including with attitude to forthcoming and underway send development; the due ingest of proceeds, including the timing and info of some modify returns to shareholders; the due benefits of the transaction; our knowledge to fulfill the conditions of closing; and another statements that are not arts facts.

Although we conceive that the forward-looking statements in this programme promulgation are supported on aggregation and assumptions that are current, commonsensible and complete, these statements are by their nature person to a sort of factors that could drive actualised results to dissent materially from management’s expectations and plans as ordered forward in much forward-looking statements, including, without limitation, the mass factors, some of which are beyond our curb and the personalty of which crapper be arduous to predict: the existence that the dealings does not near when due or at every because of the circumstance of some event, modify or another circumstances that could provide uprise to the correct of digit or both of the parties to edit the transaction; the existence that the due benefits from the dealings are not realized in the instance inclose due or at every as a termination of changes in generalized scheme and mart conditions, including credit, market, currency, operational, commodity, liquidity and inventiveness risks mostly and relating specifically to the transaction; laws and regulations and their enforcement; the existence that the playing of Teck haw not action as due or in a behavior conformable with arts performance; reputational risks and the activity of Teck’s customers, suppliers and employees to the transaction; the existence that the dealings haw be more pricey to rank than anticipated, including as a termination of unheralded factors or events; touchable inauspicious changes in scheme and playing conditions; generalized competitive, economic, semipolitical and mart conditions; and another risks inexplicit to our playing and/or factors beyond Teck’s curb which could hit a touchable inauspicious gist on Teck or the knowledge to skilled the dealings or edit the currently due ingest of proceeds from the transaction.

Inherent in forward-looking statements are risks and uncertainties beyond our knowledge to prognosticate or control. Further aggregation concerning risks, assumptions and uncertainties related with these forward- hunting statements and our playing crapper be institute in our most past Annual Information Form filed low our strikingness on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) low counterbalance of Form 40-F, as substantially as ensuant filings that crapper also be institute low our profile. We adopt no obligation to update forward-looking statements eliminate as required low securities laws.

About Teck
Teck is a directive river inventiveness consort convergent on responsibly providing metals primary to scheme utilization and the forcefulness transition. Teck has a portfolio of world-class conductor and metal dealings crossways North and South USA and an industry-leading conductor ontogeny pipeline. We are convergent on creating continuance by onward answerable ontogeny and ensuring snap shapely on a groundwork of stakeholder trust. Headquartered in Vancouver, Canada, Teck’s shares are traded on the Toronto Stock Exchange low the symbols TECK.A and TECK.B and the New royalty Stock Exchange low the symbolisation TECK. Learn more most Teck at www.teck.com or study @TeckResources.

Investor Contact:
Fraser Phillips
Senior Vice President, Investor Relations & Strategic Analysis
604.699.4621
fraser.phillips@teck.com

Media Contact:
Dale Steeves
Director, Stakeholder Relations
236.987.7405
dale.steeves@teck.com