Teck Resources Ord Shs Class A T.TECK.A

RE: teck tax credit

[HighTest]

Globe/CP say Teck to shovel cash flows into debt

2008-10-24 07:57 ET - In the News

The Globe and Mail reports in a Canadian Press dispatch Friday that shares in Teck Cominco fell 16 per cent Thursday to their lowest level in four years on mounting concerns about the company's debt load and the impact of falling commodity prices. The unblined item says Teck plans to cut back across all of its businesses and may sell assets to help pay for its $14-billion (U.S.) takeover of Fording Canadian Coal Trust, which is set to close next week. "Our primary objective is to reduce these debt balances" through a $1-billion cash tax refund expected in the first half of 2009, potential asset sales and cash on hand, the company said in a statement. Greg Waller, Teck's vice-president of investor relations, said in an e-mail that Teck will consider selling "non-core asset sales, such as some of our gold assets." Teck chief executive officer Don Lindsay said paying off the $10-billion in debt that resulted from the Fording deal is "absolute No. 1 priority" for the company. "All cash flows available will be devoted to that," he said during a conference call. Teck fell $1.78 to $12.54 on the Toronto Stock Exchange.