Teck Shares Climb After Separation Plan Dropped, Results

By Robb M. Stewart

Teck Resources Ltd.'s shares rose Wednesday after the resources company dropped plans to split in two and said it would instead seek a simpler approach to a separation.

In morning trading, the shares were 4% higher, at 61.33 Canadian dollars (US$45), widening the year-to date gain on the Toronto Stock Exchange to 20%. In New York, the stock was up 4.3%, at US$45.05.

The Canadian mining company's board said strong support was received from shareholders for a separation aimed at unlocking value by splitting the steelmaking-coal operations from the base metals business, but it also heard that some investors would prefer a more direct approach to a split. Teck said the company aims to incorporate feedback into its revised plans.

Teck's shareholders were scheduled to vote on the proposed separation at the annual meeting Wednesday.

Earlier Wednesday, the mining company reported earnings from continuing operations fell to C$2.23 a share in the first quarter of the year from C$2.78 a year earlier. On an adjusted basis, earnings came in at C$1.78 a share, below the C$1.88 mean forecast of 16 analysts polled by FactSet.

Revenue for the period fell to C$3.79 billion, missing the C$4.1 billion forecast by analysts.

Teck said it continues to expect copper production this year of between 390,000 and 445,000 metric tons and coal output of 24 million to 26 million tons.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

April 26, 2023 10:22 ET (14:22 GMT)

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