Teck Resources Ltd. Reports Lower-Than-Expected Q1 Profit Due To Higher Costs & Lower Production And Sales Volumes -

Teck Resources Ltd. Reports Lower-Than-Expected Q1 Profit Due To Higher Costs & Lower Production And Sales Volumes

Apr 25, 2017Jeremy ParkinsonFinance0

Teck Resources Ltd. (NYSE:TECK), North America’s largest producer of steel-making coal, reported lower-than-expected Q1 profit due to higher costs, lower production and sales volumes.

BNN.ca

The company said on Tuesday that:

Unit production costs in the first quarter rose by $13 to $56 per ton from a year ago.

First-quarter coal production was 6.1 million tonnes, 8% lower than last year.

Teck, which also mines gold and silver, said:

adjusted profit attributable to shareholders rose to $671 million, or $1.16 per share, from $18 million, or 3 cents a share, in the first quarter of 2016. Analysts on average were expecting the company to earn $1.29 per share.

revenue rose 70% to $2.89 billion short of analyst expectations of $3.04 billion…

Net profit attributable to shareholders jumped to $572 million, or C$0.99 per share, for the quarter ending March 31, from $94 million, or $0.16 share, in the same period last year.

Teck said a quarterly benchmark price for steel-making coal for the second quarter was not yet agreed upon due to cyclone Debbie’s impact on Australian supply.

It expects total steel-making coal sales, including spot sales, of at least 6.8 million tonnes in the second quarter. That is in line with last month’s updated forecast.

Steel-making coal prices almost tripled from a year ago and spot prices stabilized in the $150 to $160 per ton range during the quarter, while copper and zinc prices rose by 25 per cent and 66 per cent respectively, Teck said.

Steel-making coal prices have soared from about $156 a ton at the end of March to more than $200 a ton, amid supply disruptions caused by a powerful cyclone in Australia.