Visitors pass a logo of Teck Resources Ltd mining company during the Prospectors and Developers Association of Canada annual convention, in Toronto, in a March 4, 2019, file photo.
Chris Helgren/Reuters
Teck Resources Ltd. says it would be forced to take a write down of $1.1-billion on the Frontier oil sands project if the federal government doesn’t approve it.
The Liberals are expected to make a decision by the end of the month on whether Vancouver-based Teck is allowed to proceed with Frontier.
Over the past few months, Frontier has become a political flashpoint in Canada. Its proponents, such as Alberta Premier Jason Kenney, argue that approving the project would boost the ailing provincial economy, but its detractors point out that Frontier would significantly set back Canada’s attempts to reduce its carbon footprint and meet international emissions benchmarks.
Story continues below advertisement
An early stage study predicted that the project could produce 260,000 barrels of oil a day, which would make it one of the biggest operations in the oil sands.
But Teck hasn’t proven whether the project which it previously said would cost more than $20-billion to construct, would be commercially viable.
Last month, the miner’s chief executive, Don Lindsay, told investors at a conference that for the project to go ahead, it would need higher oil prices, sufficient pipeline capacity and a partner, to help shoulder the burden.
If the project does get the go-ahead from the federal government, Teck says it will work on trying to prove the project can be viable.
On Friday, the company said in a statement alongside its fourth quarter earnings, that thanks to ongoing technological and operational improvements it believes Frontier will be “technically feasible and commercially viable.”
The uncertainty over the Frontier project comes as Teck struggles with its other oil sands property, which is already in production. Teck took a $910-million write down on Fort Hills, which it co-owns alongside Suncor Energy Inc., in the quarter, due to lower expectations for crude oil prices.
Teck’s fourth quarter results were weaker than expected.
Story continues below advertisement
It reported adjusted earnings per share of $0.22 compared to the $0.40 that the street was looking for.
The company also sounded a bleak tone for the year, as it navigates weakness across its core metallurgical coal business.
“Ongoing global economic uncertainty negatively impacted commodity prices in the fourth quarter and that has continued into 2020, exacerbated by the effect on markets from the coronavirus and the impact of severe weather conditions in British Columbia, followed by blockades on rail lines,” Mr. Lindsay said in a statement.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.
Toronto-Dominion Bank has named new co-heads of its U.S. commercial banking business.
TD says Andy Bregenzer and Jill Gateman will jointly lead the operations.
The bank says the appointments follow the announcement earlier this year of Chris Giamo’s retirement.
Bregenzer will focus on leading all aspects of the regional commercial bank, including small business.
Gateman will lead TD’s national commercial banking effort in the U.S., including middle market, sponsor-backed finance and TD’s other specialty lending lines of business.
TD, which is working to resolve investigations into failures in its anti-money laundering program in the U.S., announced last week that chief executive Bharat Masrani would retire next year and be replaced by Raymond Chun.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.
The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.
Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.
A strategic review is often seen by investors as a prelude to a sale by a company.
Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.
Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – National Bank of Canada says it has cleared a key regulatory hurdle in its proposed acquisition of Canadian Western Bank.
The Montreal-based bank says it has received the Competition Bureau’s clearance for the deal.
The transaction still requires approval by the Office of the Superintendent of Financial Institutions and the minister of finance.
Canadian Western shareholders voted to approve the deal earlier this month.
National Bank announced an all-stock deal to buy Canadian Western earlier this year in a proposal that valued the Edmonton-based bank at about $5 billion.
It has said its acquisition of Canadian Western will significantly expand its western footprint and create a stronger national competitor.
This report by The Canadian Press was first published Sept. 26, 2024.
