Teck(US:TECK)2023-02-21 15:21Teck's Strategic Separation and Dual Class Amendment - Teck is separating into two independent, publicly-listed companies: Teck Metals Corp and Elk Valley Resources Ltd (EVR)[62] - Teck shareholders will receive 1 EVR share for every 10 Teck shares, plus cash, subject to a Dutch auction process[31] - Nippon Steel will pay Teck approximately $1 billion in cash for an interest in EVR, implying an $11.5 billion value for the steelmaking coal assets[94, 136] - A dual-class share amendment is proposed, with Class A common shares carrying multiple voting rights eliminated after six years[23, 62] Financial Performance and Outlook - Teck achieved record financial results in 2022[4] - $0.5 billion in dividends were paid[5] - $1.3 billion of debt was repaid[6] - $1.4 billion in share buybacks were executed[73, 74] Production and Unit Cost Guidance - Quebrada Blanca Phase 2 (QB2) is expected to reach full capacity by the end of 2023, with net cash unit costs of US$1.40-1.60/lb at full production[8] - QB2 is expected to produce 150-180 kt of copper in 2023 and 285-315 kt annually in 2024-2026[75] - Steelmaking coal production is guided at 24.0-26.0 Mt[106] Transition Capital Structure (TCS) - The Transition Capital Structure (TCS) is estimated to be fully paid in approximately 11 years at a long-term HCC price of US$185/t[100] - Forecast proceeds of approximately $14 billion over the life of the TCS (100% basis)[100]