Teck sees continued cash flow growth, achieves record C$1.4 billion

By Aleesia Forni

Columbus, Ohio, Jan. 19 - Teck Resources Ltd. has seen its cash flow growing at roughly a 20% compound annual rate since 2008, reaching a record high of C$1.4 billion in the third quarter of 2011.

"Our quarterly cash flow can be quite volatile with distinct seasonality primarily in our zinc and coal businesses," chief executive officer Donald Lindsay added during the company's presentation at the Whistler Institutional Investor Conference on Thursday.

The company has a "strong and liquid" balance sheet and also raised its semiannual dividend rate to C$0.40 per share.

"We don't have a formal dividend policy in terms of payout ratio," Lindsay said. "Our business cycle is cyclical, always will be, and we have to be thinking ahead to the capital requirements of our business given the strong investment opportunities we have, particularly in copper and coal."

The company intends to pay that dividend at a "sustainable rate with a conservative view of where the cash flow could be relative to the capital requirements."

Teck is a Vancouver, B.C.-based mining company with a focus on copper, steelmaking coal and zinc.

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