Teck Drops 5.48% After Q2 Results
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Teck was down 5.48% to $21.57 on the NYSE today in a generally negative day for base metal miners.
Gross profit was $1.1 billion in the second quarter compared with $1.2 billion a year ago. Teck blamed the drop on debt redemption and an asset impairment at its steelmaking coal operations.
Base metal prices were down. In the second quarter, Teck said LME copper and zinc prices each decreased by 11% from a year ago and averaged US$2.77 and US$1.25 per pound, respectively.
Metallurgical coal production was revised down from between 25.5 and 26.0 million tonnes to 26.0 to 26.5 million tonnes as a result of logistics issues.
Teck also flagged sector concerns, which may impact coal sales.
"Steel mill margins are under pressure, mainly due to reduced steel prices and increased iron ore pricing, while the macroeconomic outlook and uncertainty created by ongoing global trade disputes continue to affect demand in some regions," the company said in a statement.
Copper and zinc production guidance was unchanged.