Teck Declares $0.625 per Share Dividend and Authorizes up to $250 Million Share Buyback
February 21 2023 - 5:00AM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) announced today that its Board of Directors has declared
an eligible dividend of $0.625 on its outstanding Class A common
shares and Class B subordinate voting shares, consisting of a base
dividend of $0.125 per share and a supplemental dividend of $0.50
per share, to be paid on March 31, 2023, to shareholders of record
at the close of business on March 15, 2023.
In addition to the dividend, the Board has
authorized management to purchase up to $250 million of Class B
subordinate voting shares. Additional buybacks will be considered
regularly in the context of market conditions.
Teck’s capital allocation framework contemplates
that a minimum of 30% of Available Cash Flow will be used for
distributions to shareholders and share repurchases. The dividend
and planned share repurchases announced today are in addition to
$1.9 billion in aggregate of dividends and Class B subordinate
voting share repurchases in 2022, and reflect the final financial
results for 2022 and a distribution in respect of 40% of the Fort
Hills proceeds received in February 2023 in accordance with the
capital allocation framework.
All share repurchases are expected to be made in
accordance with Teck’s previously announced normal course issuer
bid program, or any renewal thereof, or by such other means as may
be permitted under applicable securities laws. The current program
authorizes Teck to purchase up to 40 million Class B subordinate
voting shares through the period ending November 1, 2023. Any
repurchases following that date may depend on regulatory approval
of a renewed normal course issuer bid program. Teck intends to
purchase shares opportunistically. The company will determine the
timing of any purchases and may repurchase fewer or a greater
number of shares, subject to the requirements of the issuer bid
program and applicable securities laws.
Forward-Looking StatementsThis press release
contains certain forward-looking statements within the meaning of
the Unites States Private Securities Litigation Reform Act of 1995
and forward-looking information as defined in the Securities
Act (Ontario). Forward-looking statements and information can
be identified by statements that certain actions, events or results
“may”, “could”, “should”, “would”, “might” or “will” be taken,
occur or achieved. Forward-looking statements include statements
regarding concerning Teck’s intention to make purchases of Class B
subordinated voting shares, and Teck’s expectations regarding the
amount of funds to be spent to purchase Class B subordinated voting
shares, the expectation that up to $250 million, or any, Class B
subordinated voting shares will be repurchased, and the intention
to continue the annual base dividend of $0.50 per share.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements of Teck to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Factors that may cause actual results to vary include, but are
not limited to, the ability to acquire Class B Shares in the market
through the normal course issuer bid and in compliance with
regulatory requirements, share price volatility, negative changes
to commodity prices, availability of funds to purchase shares,
alternative uses for funds and other risk factors impacting Teck’s
business as detailed in Teck’s annual information form and in its
public filings with Canadian securities administrators and the U.S.
Securities and Exchange Commission. Declaration of dividends is at
the discretion of the Board and dividends, as well as share
repurchases, are subject to conditions under corporate law. Any of
the foregoing may have the result of restricting future dividends
or share repurchases. Teck does not assume the obligation to revise
or update these forward-looking statements after the date of this
document, except as may be required under applicable securities
laws.
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. 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. Learn more about
Teck at www.teck.com or follow @TeckResources.
Investor Contact:Fraser PhillipsSenior Vice
President, Investor Relations & Strategic
Analysis604.699.4621fraser.phillips@teck.com
Media Contact:Chris Stannell Public Relations
Manager604.699.4368chris.stannell@teck.com
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