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Teck Resources Limited (TSX: TCK.A).

Teck is Canada's largest diversified resource company, committed to responsible mining and mineral development. We produce materials essential to the quality of life of people around the world copper, steelmaking coal, zinc and energy.

Our nearly 11,000 employees worldwide have expertise across a wide range of activities related to mining and minerals processing including exploration, development, smelting, refining, safety, environmental protection, product stewardship, recycling and research.

Headquartered in Vancouver, Canada, we own, or have an interest in, 12 mines in Canada, the United States, Chile and Peru. We also operate a large metallurgical complex, are partners in a wind power facility, and are a significant producer of specialty metals such as germanium and indium. We are actively exploring for copper, zinc and gold in the Americas, Asia Pacific, Europe and Africa.

Teck Reports Unaudited First Quarter Results For 2019

April 22, 2019

* EBITDA 1 was $1.4 billion; profit attributable to shareholders was $630 million; adjusted fully diluted earnings per share were $0.99

* Upgraded to investment grade credit ratings by four rating agencies eliminating $1.1 billion in letter of credit requirements

* Liquidity remains strong at $8.7 billion

* Solid operating performance, no change in 2019 guidance

Vancouver, BC--British Columbia, April 22, 2019 (GLOBE NEWSWIRE)--Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") reported profit attributable to shareholders of $630 million ($1.11 per share) for the first quarter of 2019 compared with $759 million ($1.32 per share) a year ago. Adjusted profit attributable to shareholders1 2 was $568 million ($1.00 per share) compared with $753 million ($1.31 per share) a year ago.

"Demand for our products remains strong, commodity prices continue to be solid and we were pleased to regain investment grade credit ratings, which confirms our strong financial position," said Don Lindsay, President and CEO. "Our previously issued guidance for the year remains unchanged and our main focus for the remainder of the year is the development of our QB2 copper project."

Highlights and Significant Items

* Profit attributable to shareholders was $630 million ($1.11 per share) in the first quarter compared with $759 million ($1.32 per share) a year ago. Adjusted profit was $568 million ($1.00 per share) compared with $753 million ($1.31 per share) in the first quarter of last year.

EBITDA was $1.4 billion compared with $1.6 billion in the first quarter of 2018. Our adjusted EBITDA in the first quarter totaled $1.3 billion compared with $1.6 billion last year.

* Gross profit was $1.0 billion in the first quarter compared with $1.4 billion a year ago. Gross profit before depreciation and amortization was $1.4 billion compared with $1.7 billion in the first quarter of 2018.

* The transaction through which Sumitomo Metal Mining Co. Ltd. (SMM) and Sumitomo Corporation (SC) subscribed for a 30% indirect interest in Compania Minera Quebrada Blanca S.A., which owns Quebrada Blanca Phase 2 (QB2), closed on March 29, 2019. On closing of the transaction SMM and SC contributed $1.3 billion (US$966 million) to the QB2 project and are expected to contribute a further US$307 million over the remainder of 2019.

* Construction of QB2 was approved by our Board in December 2018 and mobilization is in progress. The current construction workforce is over 1,600 people across the six major construction areas. First production is targeted for the second half of 2021.

* In March, we paid our regular base dividend of $0.05 per share, which totaled $28 million. We continue to purchase shares under our normal course issuer bid in accordance with our Board's direction to management to apply $400 million to the repurchase of Class B subordinate voting shares. To date, we have purchased approximately 11.9 million Class B subordinate voting shares for $348 million, of which $180 million was purchased in the first quarter. As previously disclosed, our Board will consider an additional return of capital to shareholders over the course of 2019 following the closing of the QB2 transaction and related project financing.

* As previously announced, in early February we agreed with Posco Canada Limited (Poscan) to substantially increase the royalty paid by Poscan in respect of its 20% share of Green hills coal production, effective February 11, 2019. At benchmark steel making coal prices of approximately US$200 per tonne, the royalty payment will increase by approximately $90 million annually. At current steel making coal prices, the increase in the royalty has increased first quarter revenue by approximately $13 million. The new royalty remains in effect until December 31, 2022.

* Our liquidity remains strong at $8.7 billion, including $2.5 billion in cash at April 22, 2019, of which $1.3 billion is in Chile for the development of our QB2 project.

* We have received investment grade credit ratings from four rating agencies since the end of 2018. As a result, approximately $1.1 billion in letters of credit posted as financial security for QB2 power purchase contracts, and transportation, tank storage and pipeline capacity agreements for our interest in Fort Hills have been terminated.

* There is no change to our 2019 guidance.
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Title Annotation:Leading Companies
Publication:Canada Mining
Geographic Code:1CANA
Date:Jul 25, 2019
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