Markets

Teck Resources to Divest 70% Interest in Haib Minerals

Canada-based diversified miner Teck Resources LimitedTECK entered into an asset sale agreement to sell 70% interest in Haib Minerals Ltd. to Deep South Resources Inc., which already owns the remaining 30% stake in Haib.

Per the deal, Teck Resources, which currently has 4.16 million shares of Deep South, would receive 13.6 million additional shares of the company as consideration. This would increase Teck Resources' holding of Deep South's outstanding shares to 35%. If the company's 17.76 million shares fail to account for 35% of the outstanding shares immediately after closing, Deep South will issue additional shares to bring the Teck's post-closing ownership at 35%. The main reason for Teck Resources' purchase and investment in Deep South's common shares was to facilitate and accelerate the sale of their interest in Haib Ltd.

Teck Resources also holds convertible debentures worth $373,195 and if converts the entire principal amount, it will end up owning 38% of Deep-South's outstanding shares. The company would, however, decide to increase or decrease its holdings in Deep South based on market conditions and other relevant factors.

Zacks Rank & Key Picks

Headquartered in Vancouver, Teck Resources deals in mining and mineral development with business units focused on copper, coal, zinc, gold and energy. The company currently carries a Zacks Rank #2 (Buy).

Teck Resources has outperformed the Zacks categorized industry over the prior six months. During the aforesaid period, the company's shares improved almost 41% while the broader industry gained around 34%.

Teck Resources has outperformed the Zacks categorized Mining Miscellaneous industry over the prior six months. During the aforesaid period, the company's shares improved almost 41% while the broader industry gained around 34%.

Some better-ranked players in the industry include BHP Billiton Limited BHP , Denison Mine Corp DNN and HudBay Minerals Inc HBM . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks#1 Rank stocks here .

BHP Billiton is expected to report growth of 6.85% and 12.59% on its sales and earnings, respectively for 2018.

Denison Mine reported average positive earnings surprise of 12.50% in the preceding four quarters.

HudBay Minerals is expected to report growth of 348.48% on its earnings for 2017.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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