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Friday, July 3, 2009 10:11 AM

Teck financing wins fans

Andrew Willis

Teck Resources is winning solid reviews for its $1.7-billion vote of confidence from the China Investment Corp.

As analysts file their first take on the news of the mining company’s share sale to the Chinese fund, they are highlighting the instant improvement in Teck's balance sheet. Teck is also winning fans because the company will no longer forced to sell a stake in its coal division during a period of relatively weak coal prices.

“The move is seen… as positive for the company, with the company issuing equity after a strong recent share price rally,” said a report Friday from BMO Nesbitt Burns mining analyst Tony Robson.

“The move is surprising given recent company quotes that it was not looking to raise equity but rather potentially sell a stake in the Elk Valley met coal operations,” added Mr. Robson. He forecasts that Teck’s net debt/equity could improve from previous estimate of 65 per cent to a more conservative 45 per cent ratio.

A conference call on the financing is scheduled for at 11:00 AM Friday, Eastern time, and the dial in number is 416.340.2216.

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Streetwise Contributors

Andrew Willis

Andrew Willis joined The Globe and Mail in September of 1995. His career has included stints at a number of publications, including The Financial Post, The Financial Times of Canada, Dow Jones/Wall Street Journal, and MacLean's magazine. He also did freelance writing for Investment Executive magazine. He appears on television for BNN TV and CBC Newsworld.

Andrew has co-written a book, The Bre-X Fraud, with business journalist Douglas Goold.

Read Streetwise Tuesday through Friday in the pages of Report on Business.

 
Boyd Erman

Boyd Erman

Boyd Erman is a long-time business journalist who has worked at Dow Jones, Bloomberg, and the National Post before joining the Globe and Mail. Over the years, his areas of coverage have included economics, monetary policy, debt markets and corporate finance.

In addition, he is a regular commentator and guest host on Business News Network.

 

Steve Ladurantaye

Steve Ladurantaye wrote about technology companies in Ottawa before reporting for the Peterborough Examiner and Kingston Whig-Standard, where he won a National Newspaper Award for explanatory journalism. After joining the Globe and Mail in 2007, his work has regularly appeared in Report On Business and Globe Investor Magazine.

 
Globe and Mail reporter Tara Perkins

Tara Perkins

Tara Perkins has been a business reporter since 2004, following a brief stint as overnight editor of globeandmail.com. She has been writing for the Globe's business section since the spring of 2007, covering the banking sector during the course of the financial crisis. Prior to that, she worked for the Toronto Star. Tara has a Bachelor of Journalism from Ryerson University and a Bachelor of Commerce from the University of Guelph.

 
May 28/ 2009 - Jeff Gray is photographed for logo in Toronto, Ont. May 28/2009. Photo by Kevin Van Paassen/The Globe and Mail May 28/2009

Jeff Gray

Jeff Gray joined The Globe in 1998. After stints as a reporter in sports and as a copy editor in news, he helped relaunch globeandmail.com as a breaking news website in 2000. He moved to The Globe's Toronto city hall bureau in 2004, writing a weekly column about traffic and public transit. He has also worked for the world desk of the BBC's news website in London and for CBC News. He covers legal affairs for The Report on Business.

 
Jacquie McNish

Jacquie McNish

Jacquie McNish has been a business writer with The Globe and Mail since 1988. Prior to that she was a reporter with The Wall Street Journal.

During her time at The Globe and Mail, she has served as the paper's New York correspondent and won three National Newspaper Awards. She is the author of The Big Score: Robert Friedland and The Voisey's Bay Hustle and Wrong Way: The Fall of Conrad Black, for which she and co-author Sinclair Stewart won the National Business Book Award. She is a co-host of Market Morning on the Business News Network.