Teck Resources is making progress in evaluating various offers from potential buyers for its steelmaking coal business, the Vancouver-based miner said Thursday.
In a conference call, CEO Jonathan Price declined to comment on whether a deal was imminent, but said Teck’s board and an independent special committee were engaged with “multiple counterparties” and were doing move the talks forward as quickly as possible.
“I don’t want to say anything now to presume the outcome or anticipate what might happen. We’ll take the time to get it right,” said Price, who answered questions from financial analysts after the company’s second quarter financial results were released.
“But we’re not sitting here. We take a very active and diligent approach to getting things done as quickly as possible. »
Teck, Canada’s largest diversified mining company, is struggling to separate its coal assets from those of base metals, hoping to increase its production of copper and zinc to meet growing global demand. These two metals are used in the production of electric vehicles and are considered key resources for the upcoming energy transition.
But a glitch undermined that plan in the spring, when Swiss commodities giant Glencore launched a hostile $25 billion takeover bid for Teck.
Teck’s board rejected Glencore’s initial offer, but Glencore scored its own victory in April, when Teck was forced to overturn a shareholder vote on its proposed split. It had become apparent that Teck did not have the required support for its proposal, which Glencore had been lobbying against.
Glencore has since presented a new offer to Teck’s board, proposing to acquire the steelmaking coal assets for an undisclosed cash amount.
The Swiss company said it also remains willing to pursue its bid for all of Teck.
Mr. Price asserted that the various parties who have expressed interest in Teck’s coal business have presented a “range of proposals”, and added that the board will only sign an agreement that maximizes the value of the company.
“There will be a series of considerations that we will have to take into account when making these decisions,” he stressed. We have deliberately sought to keep a very open mind here. »
Teck Resources also announced on Thursday that it was lowering its annual production forecast for its flagship project, the expansion of its Quebrada Blanca, or QB2, copper mine in Chile, due to construction and commissioning issues. service.
The company is now aiming for an annual copper production of between 330,000 tonnes and 375,000 tonnes, whereas it previously targeted production between 390,000 tonnes and 445,000 tonnes.
Mr. Price clarified that Teck continues to expect the QB2 expansion project to be in full operation by the end of this year, and added that the company’s copper production forecast for the mine for 2024-2026 remained unchanged.
Teck also reported the death of an employee at the QB2 mine site during the quarter.
Profit attributable to shareholders of the company was 643 million for the quarter ended June 30, compared to 1.8 billion for the same period last year, which was explained in particular by a fall in world copper prices.
The company’s quarterly revenue totaled $3.5 billion, compared to $5.3 billion in the second quarter of 2022.
On an adjusted basis, Teck said it earned $1.22 per share for its most recent quarter, compared to an adjusted profit of $3.25 per share a year earlier.
