|Vancouver, B.C. - Teck Cominco Limited today announced that it is increasing the semi-annual dividend on its outstanding Class A common and Class B subordinate voting shares from $0.40 per share to $1.00 per share, effective commencing with the dividend payable on July 4, 2006 to shareholders of record on June 19, 2006.
Teck Cominco President and Chief Executive Officer Donald R. Lindsay said: “This dividend increase reflects Teck Cominco’s confidence that, based on the combination of current balance sheet strength, reasonable earnings power, high commodity prices and generally low inventories, this level of dividend should be sustainable for the foreseeable future. Our Board has selected the $2.00 per share annual dividend rate with a view to distributing meaningful amounts of cash to shareholders while preserving Teck Cominco’s flexibility to continue to grow its diversified asset base.”
Teck Cominco anticipates that, as a consequence of the dividend increase, holders of its 1999 exchangeable debentures may wish to exchange those debentures. In the near term, Teck Cominco anticipates announcing a procedure that will facilitate an orderly tendering of the exchangeable debentures for consideration consisting of Class B subordinate voting shares plus cash for any accrued, but unpaid interest.
Cautionary Statement on Forward-Looking Information
This press release contains certain forward-looking statements. These forward-looking statements include estimates, forecasts, and statements as to management’s expectations with respect to, among other things, commodity prices, the sustainability of earnings and financial results of the company and the company’s intentions regarding its 1999 exchangeable debentures. These forward-looking statements involve numerous assumptions, risks and uncertainties with respect to, among other things, future commodity prices, the results of operations of the company and related matters, and actual results may vary materially.
About Teck Cominco
Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada. Shares are listed on the Toronto Stock Exchange under the symbols TEK.MV.A and TEK.SV.B. The company is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold and specialty metals. Further information can be found at www.teckcominco.com.
This media release is not, and should not be construed as, an offer to sell or a solicitation of an offer to buy securities in any jurisdiction.