Teck Resources highlights debt reduction, ratings improvement in 2010

By Lisa Kerner

Charlotte, N.C., Nov. 23 - Teck Resources Ltd. crossed two items off its list of objectives for 2010: the elimination of bank debt and the achievement of investment-grade ratings, said president and chief executive officer Don Lindsay during a presentation at the Macquarie Global Metals & Mining Conference Tuesday in New York.

The company paid back $9.8 billion of debt in less than 18 months, and all four rating agencies rated the company investment grade, according to Lindsay.

In addition, Teck Resources refinanced $1.3 billion of notes for an annual savings of $85 million, the company presentation showed.

Teck Resources has been using its cash buildup to buy back bonds. The company had been paying about 10% on the bonds and realized a $150 million reduction in interest with the buyback, said Lindsay.

Acquisitions over the past five years have tripled the company's copper resources, boosted assets about five times to $30 billion and more than doubled revenue to $3.4 billion, Lindsay said.

Looking ahead, Lindsay predicted that a 40% increase in coal production and a 50% increase in copper production will drive the company's revenues over the next three to four years.

Teck is a Vancouver, B.C.-based mining company with major business units focused on copper, steelmaking coal, zinc and energy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.