VANCOUVER – Teck Resources (TSX:TECK.B) has announced plans to issue a special dividend to its shareholders, in addition to its regular dividend, and increase its share buyback program by $230 million.
The diversified mining company, based in Vancouver, says the two measures are being taken because of Teck’s strong cash position.
Its shareholders of record as of Dec. 15 will receive a supplemental dividend of 40 cents per share on top of the regular dividend, which is five cents per quarter.
The total cost of the dividend payments on Dec. 29 will be $260 million. Teck will also spend an additional $230 million on its existing share buyback program to repurchase class B shares through the end of March.
Teck’s B shares have recently traded about where they began 2017, just above $27, but were below $20 each in mid June. They closed at $27.06 on Thursday and opened Friday at $27.44, a gain of 1.4 per cent.
Teck chairman Norman Keevil said in a statement that the board wants shareholders to benefit directly the company’s strong results.
“We are also committed to adjusting our capital spending plans consistent with prudent management of our balance sheet as we move into 2018,” Keevil said in the statement, issued Thursday after the Toronto Stock Exchanged closed.