Teck Announces Dividend and Share Buyback

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 16, 2017) - Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") announced today that its Board of Directors has approved the distribution of cash to shareholders through a supplemental dividend of $0.40 per share and a share repurchase mandate equivalent to an additional $0.40 per share, in addition to its annual base dividend of $0.20 per share ($0.05 per quarter). Teck will pay an eligible dividend of $0.45 per share on its outstanding Class A common shares and Class B subordinate voting shares on December 29, 2017, to shareholders of record at the close of business on December 15, 2017. This dividend represents the regular quarterly dividend of $0.05 per share contemplated by Teck's dividend policy and the supplemental dividend of $0.40 per share.

In addition to the $260 million aggregate dividend payment, taking into account Teck's strong cash position and feedback from investors who favour share repurchases over dividends, the Board of Directors has directed management to apply an additional $230 million, or approximately $0.40 per share, to the repurchase of Class B subordinate voting shares through March 31, 2018 under Teck's previously announced normal course issuer bid program. Purchases will be made opportunistically over this period, subject to relevant securities and stock exchange rules.

"The return of a total of $578 million, or $1.00 per share, 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 Don Lindsay, President and CEO.

"We want to ensure that shareholders benefit directly from our strong results," said Dr. Norman Keevil, Chairman. "We are also committed to adjusting our capital spending plans consistent with prudent management of our balance sheet as we move into 2018."

The $578 million in dividends and planned share repurchases represents a yield of approximately 3.7% on the November 15, 2017 closing price of Class B subordinate voting shares on the Toronto Stock Exchange of $27.10 per share.

Teck's normal course issuer bid program authorizes Teck to purchase up to 20 million Class B subordinate voting shares through the period ending October 9, 2018. Teck's management will determine the timing of purchases, and may repurchase fewer or a greater number of shares, subject to the requirements of the issuer bid program.