Teck Announces Sale of Fort Hills Interest
27 October 2022 - 11:40AM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) announced today it has agreed to sell its 21.3% interest
in the Fort Hills Energy Limited Partnership (“Fort Hills”) and
certain associated downstream assets to Suncor Energy Inc.
(“Suncor”) for gross proceeds of approximately $1 billion in cash,
subject to customary closing adjustments reflecting a November 1,
2022 effective date. The transaction value is consistent with the
current outlook for the Fort Hills business reflected in the most
recent in-depth review of Fort Hills conducted by Suncor and the
resulting long-range plan for the project.
“This transaction advances our strategy of pursuing industry
leading copper growth and rebalancing our portfolio of high-quality
assets to low carbon metals,” said Jonathan Price, CEO. “We will
review the use of proceeds in accordance with our capital
allocation framework early in 2023.”
Closing of the transaction is subject to customary conditions
including receipt of relevant regulatory approvals, and is expected
to occur in the first quarter of 2023.
As a result of the transaction, we expect to record an
after-tax, non-cash impairment charge of approximately $950 million
in the third quarter of 2022.
RBC Capital Markets and J.P. Morgan Securities Canada have acted
as financial advisors to Teck in connection with this
transaction.
Forward Looking Statements This news release
contains certain forward-looking information and forward-looking
statements as defined in applicable securities laws (collectively
referred to as “forward-looking statements”). These statements
relate to future events or our future performance. All statements
other than statements of historical fact are forward-looking
statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. Forward-looking statements in this news
release include statements regarding the timing of closing of the
transaction and our expectation that the transaction will close,
the expected impairment charge that we expect to record and our
expectations regarding use of proceeds.
These statements are based on a number of assumptions,
including, but not limited to, assumptions that the conditions to
closing will be satisfied or waived in a timely manner. Factors
that may cause actual results to vary include, but are not limited
to, unforeseen complications in receiving regulatory approvals or
to satisfy other conditions to closing.
Forward-looking statements are made as of the date of this news
release and, except as required by law, Teck undertakes no
obligation to update publicly or otherwise revise any
forward-looking statements. Further information concerning risks,
assumptions and uncertainties associated with these forward-looking
statements and our business can be found in our most recent Annual
Information Form filed under our profile on SEDAR (www.sedar.com)
and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as
subsequent filings that can also be found under our profile.
About TeckAs one of Canada’s leading mining
companies, Teck is committed to responsible mining and mineral
development with major business units focused on copper, zinc, and
steelmaking coal, as well as investments in energy assets. Copper,
zinc and high-quality steelmaking coal are required for the
transition to a low-carbon world. Headquartered in Vancouver,
Canada, Teck’s shares are listed on the Toronto Stock Exchange
under the symbols TECK.A and TECK.B and the New York Stock Exchange
under the symbol TECK.
Teck Media ContactChris StannellPublic
Relations Manager 604.699.4368chris.stannell@teck.com
Teck Investor ContactFraser PhillipsSenior Vice
President, Investor Relations and Strategic Analysis
604.699.4621fraser.phillips@teck.com
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