- Tech Resources Limited Take Is Confirmed That it is evaluating options for its steel-making coal business, including a possible spin-out of interest in that business to its shareholders.
- No decision has been made whether to proceed with the transaction, and there can be no assurance that any transaction will occur.
- according to bloomberg reportsTech Resources is weighing options for its coal division from September 2021 for a strategic shift towards mining more metals vital to the global energy transition. The turnover could be around $8 billion.
- Metallurgical coal used in steelmaking is facing significant pressure from policymakers.
- According to its filing, the company plans to produce more than 24 million metric tons in 2021 from four separate operations in western Canada. The share of turnover in the gross profit of the company was 55%.
- A coal byproduct would leave Tech with a suite of copper and zinc mines across the US.
- The report also said that the separation of the coal business would make tech an attractive target for big mining companies BHP Group Limited bhp And Rio Tinto Plc Rio,
- “The question going forward is whether additional value can be revealed by splitting up the company at the expense of diversification and massive profits,” Sam Crittenden, analyst at RBC Capital Markets, said in a note.
- “We don’t see a clear buyer for the coal business, so it will largely be a stand-alone coal business.”
- Price Action: TECK shares are at $44.94, up 6.95% last Thursday.
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