Teck declares supplemental dividend of C$0.40 a share
VANCOUVER (miningweekly.com) – Canadian diversified miner Teck Resources has declared a C$260-million supplementary dividend to return surplus cash on hand to shareholders, while simultaneously announcing a C$230-million share buyback programme.
The Vancouver-headquartered company reported a strong balance sheet at the end of the third quarter, with cash and cash equivalents of C$1.4-billion.
The supplementary dividend will be paid on top of the regular quarterly dividend of C$0.05 a share.
"The return of a total of C$578-million to shareholders in 2017 through a combination of the base dividend, this supplemental dividend and our commitment to near-term repurchases under our normal course issuer bid, reflects Teck's strong free cash flow generation over the last 12 months, and strong outlook for our business," said president and CEO Don Lindsay.
Teck will pay an eligible dividend of C$0.45 a share on its outstanding Class A common shares and Class B subordinate voting shares on December 29, to shareholders of record at the close of business on December 15.
The board has directed management to apply a further C$230-million, or about C$0.40 a share, to repurchase Class B subordinate voting shares through to March 31, 2018, under Teck's previously sanctioned normal course issuer bid programme. Purchases will be made opportunistically over this period, subject to relevant securities and stock exchange rules.
Teck's normal course issuer bid programme authorises it to buy up to 20-million Class B subordinate voting shares through the period ending October 9, 2018.
The C$578-million in dividends and planned share repurchases represents a yield of about 3.7% on the closing price of Class B subordinate voting shares on the TSX on Wednesday, of C$27.10 apiece.
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