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Teck Resources (NYSE:TECK) said Thursday it is engaging with “multiple counterparties” potentially interested in buying its steelmaking coal operations, as the miner seeks to exit the business while fending off a takeover approach by Glencore.
In a post-earnings conference call, CEO Jonathan Price did not say whether a deal is imminent, but “we’re not sitting on our hands here. We’re taking a very active and diligent approach to moving this forward as quickly as we can.”
The CEO said the various groups have brought a forward a “range of proposals” for the coal business, but the board would only sign off on a deal that maximizes the value of the business.
The coal update came after Teck (TECK) reported Q2 adjusted earnings that missed expectations, and revenues fell to $3.5B from $5.3B in the year-earlier quarter.
Teck (TECK) also lowered annual production guidance for its flagship QB2 copper mine expansion in Chile due to construction and commissioning challenges, cutting its outlook for QB2 to 80K-100K metric tons, resulting in company-wide guidance falling to 330K-375K tons from its prior outlook of 390K-445K tons.
Price said Teck (TECK) continues to expect the QB2 expansion project to be operating at full production rates by year-end, and the company’s copper production guidance for the mine for 2024-26 remains unchanged.
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