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Miner Teck says could monetize assets to raise cash if needed

Published 2015-12-02, 04:54 p/m
© Reuters. Miner Teck says could monetize assets to raise cash if needed
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TORONTO, Dec 2 (Reuters) - Diversified Canadian miner Teck
Resources TCKb.TO said Wednesday it has already made sharp
cuts in response to an extended commodities slump but if
conditions worsen it could consider capitalizing assets worth up
to $1 billion.
The Vancouver-based company said at a mining conference on
Wednesday that it currently has adequate liquidity and does not
need to pursue any asset sales or "streaming" deals, in which
mining finance companies provide upfront funds in exchange for a
portion of future mine production.
But in response to an audience question, Chief Financial
Officer Ron Millos said infrastructure funds could potentially
be interested in Teck's share of assets such as the Wintering
Hills wind turbines, the Waneta dam, Neptune Terminals and water
treatment plants at Elk Valley.
Teck could also consider selling projects that it is not
developing due to current low metals prices, such as the San
Nicolas copper project, Millos said.
"All of that, all in, could we raise a $1 billion?," Millos
said. "Maybe, maybe not."
Teck, which agreed in October to sell future silver
production from a mine in Peru, said it could consider smaller
streaming deals for silver from its Red Dog zinc mine and silver
and gold from its Highland Valley copper
operations. ID:nL3N1272NH
"That is a lever we can pull," Millos said during the
presentation at the Goldman Sachs (N:GS) metals and mining conference.
Teck plans to cut 1,000 jobs and reduce total 2016 spending
by $650 million, through a $350 million cut to capital spending
and $300 million reduction in operating costs. ID:nL3N13D24D

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