===Teck Resources (TECK) and Anglo American (NGLOY) to combine through merger of equals

 

Teck Resources and Anglo American (NGLOY) to combine through merger of equals 

• Teck Resources (TECK) and Anglo American plc (NGLOY) announce they have reached an agreement to combine the two companies in a merger of equals to form the Anglo Teck group, a global critical minerals champion and top five global copper producer, headquartered in Canada and expected to offer investors more than 70% exposure to copper.
• Both Anglo American and Teck believe the Merger will be highly attractive for both companies' shareholders and stakeholders, enhancing portfolio quality, resilience and strategic positioning. Bringing together the strengths of both companies, Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution to deliver significant, value-accretive growth through the cycle.
• Highlights
  • $800 million in pre-tax recurring annual synergies from combining both companies
  • Additional $1.4 billion (100% basis) annual average underlying EBITDA uplift expected from synergies between the adjacent Collahuasi and Quebrada Blanca operations on an average pre-tax annual basis from 2030 - 2049, which is expected to result in an increase of c.175,000 tonnes of potential additional annual copper production
  • Special dividend to Anglo American shareholders of $4.5 billion c.US$4.19 per share ahead of completion
  • Anglo American shareholders to own c.62.4% and Teck shareholders to own c.37.6% of Anglo Teck plc immediately post completion
  • Merger subject to customary closing and regulatory conditions, expected to complete within 12-18 months

Teck Resources (TECK) reported earnings on Thur 25 Oct 2018 (b/o)

** charts after earnings **

Teck Resources misses by $0.13, beats on revs; updates guidance

• Reports Q3 (Sep) earnings of CC$0.80 per share, CC$0.13 worse than the S&P Capital IQ Consensus of CC$0.93; revenues rose 4.4% year/year to CC$3.21 bln vs the CC$3.12 bln S&P Capital IQ Consensus. 
• "Our annual 2018 steelmaking coal production guidance of 26 to 27 million tonnes remains unchanged, but we currently expect it to be near the lower end of the range. The business unit continues to evaluate raw coal processing opportunities by capturing the latent production capacity of Elk Valley processing plants. As in prior years, annual production volumes can be adjusted to reflect market demand for our products and are subject to adequate rail and port service. With inflationary pressures predominantly affecting diesel costs and the additional mining activity to generate production, we expect our annual site cost of sales in 2018 to be in the range of $60 to $63 per tonne, above our original guidance range of $56 to $60 per tonne. Market fundamentals remain supportive as demonstrated by the continued strength in steel pricing and margins, and coal pricing levels. We are expecting fourth quarter sales to reach ~6.7 million tonnes, subject to the performance of our logistics chain. Continued strong operating performance in the mines and changes in our mine sequence have resulted in an increase in capitalized stripping costs to approximately $500 million, above the previous guidance of $470 million. High productivities and solid performance in the mines has led to blending options and operational flexibility that will enhance the business unit's ability to meet future production targets."

Teck Resources (TECK) reported earnings on Wed 15 Feb 2017 (b/o)

** charts after earnings ** 

 

•  Shares fall despite Q4 EPS and revenue beats.

Teck Resources beats by CAD0.13, beats on revs  :

• Reports Q4 (Dec) earnings of CAD1.61 per share, CAD0.13 better than the Capital IQ Consensus of CAD1.48; revenues rose 66.6% year/year to CAD3.56 bln vs the CAD3.38 bln Capital IQ Consensus.
• Production 
  • Fourth quarter production of 7.3 million tonnes was 14% higher than the same period a year ago and set a second consecutive quarterly production record. Annual production of 27.6 million tonnes also represents an all-time production record. This performance in the quarter and year was the result of record fourth quarter production from four of our six operations and record annual production from Elkview, Greenhills and Line Creek. We also settled five-year collective agreements at Fording River and Elkview during the quarter.
  • Sales volumes of 6.9 million tonnes in the fourth quarter was 6% higher than the same period in 2015 and represented the third highest quarterly sales in our history and best ever fourth quarter. Annual sales of 27.0 million tonnes also represents an all-time record high. This strong performance resulted from a combination of tightness in supply and robust demand in all market areas.

Outlook

• Co is expecting sales volumes in the first quarter of 2017 to be ~6.0 million tonnes. As steel mills draw down on inventories built up in the fourth quarter, Co is expecting sales to be weighted towards the back of the quarter, with the result that co expects their first quarter realized price to be ~75% of the benchmark price.
  • Co's sales volumes in the first quarter of each year are typically lower than other quarters in the year due to winter weather-related issues and Lunar New Year holidays in China.
• Steelmaking coal production in 2017 is expected to be between 27 and 28 million tonnes.
• Capital spending planned for 2017 also includes $140 million for sustaining capital and $120 million for major enhancement projects, the latter of which largely relates to the initial development costs to enter into the new mining areas mentioned above at Elk Valley operations.

Teck announces ticker symbol change to "TECK"

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 18, 2016) - Teck Resources Limited TCK ("Teck") announced today that the ticker symbol of its Class B subordinate voting shares listed on the New York Stock Exchange will change from TCK to TECK effective December 5, 2016. Also effective December 5, 2016, the ticker symbols for Teck Class A common shares and Class B subordinate voting shares listed on the Toronto Stock Exchange will change to TECK.A and TECK.B, respectively. Teck Class A common shares and Teck Class B subordinate voting shares will continue to trade under their current symbols until the close of trading on December 2, 2016.