Canadian miner Teck Resources, the target of an unsolicited takeover bid by Glencore, narrowly missed first-quarter estimates on Wednesday, hit by lower prices, weak copper and zinc sales and higher expenses.
Teck reported adjusted profit of C$1.81 per share for the three months to March 31, compared with an average analyst estimate of C$1.82, according to Refinitiv IBES data.
The Vancouver-based miner has repeatedly rejected approaches from Swiss miner and trader Glencore, pushing ahead with a proposed restructuring plan that would lead to the spinning off of its metallurgical coal business to focus on copper and zinc.
The bid and its rejection come as mining companies scramble to secure supply of copper and other metals critical to the green energy transition.
Teck is scheduled to release results of shareholder votes on its restructuring plan at the annual general meeting later in the day. The vote could be postponed if the company thinks it will not receive enough support.
The miner operates under a dual-class structure that requires approval from two thirds of shareholders on both sides.
Glencore has said that there is no deal if shareholders vote in favor of Teck’s split.
Some Teck shareholders have already cast their votes. Canada’s CPPI pension fund voted against the split over the weekend then switched to vote in favour of the move, its website showed.
China Investment Corporation (CIC), the largest holder of Teck’s common stock, has not disclosed its vote.
Large investors such as Norway’s sovereign wealth fund, asset managers Janus Henderson, Letko Brosseau and LGIM, as well as Teck mining partner Sumitomo Metals, have said they will vote in favour of the split.
Proxy advisory firms ISS and Glass Lewis have recommended that shareholders oppose the plan and Toronto-based Waratah Capital Advisors has said it voted against the move.
Teck’s quarterly gross profit for its copper business fell 42.1% after a drop in sales volumes and average realized copper prices.
Copper prices fell about 10% during the first quarter, pressured by a slower than expected economic rebound in top consumer China and signs of a global economic slowdown.
Teck reported a revenue decline of 18% to C$3,785 million.
(By Clara Denina, Mrinalika Roy and Jyoti Narayan; Editing by David Goodman)
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