Surge in copper prices boosts Teck's profit in Q1 2021
(Kitco News) - Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK) today announced that its copper production of 71,700 tonnes in Q1 2021 was similar to a year ago. Higher production at Highland Valley and Antamina was offset by lower production at Carmen de Andacollo and Quebrada Blanca, which was expected in the mine plans.
Gross profit from Teck's copper business unit was $366 million in the first quarter compared with $156 million a year ago. Gross profit before depreciation and amortization increased by $200 million compared with a year ago primarily due to substantially higher copper prices, partially offset by the strengthening of the Canadian dollar, higher unit operating costs and lower copper sales volumes.
At the company's Red Dog operations, zinc production in the first quarter decreased by 7%, while lead production increased by 11% compared to a year ago. The decrease in zinc production was primarily due to lower zinc grades, while lead production increased primarily due to improved mill recoveries.
Gross profit from Teck's zinc business unit was $125 million in the first quarter compared with $119 million a year ago. Gross profit before depreciation and amortization decreased by $12 million compared with a year ago as substantially higher zinc prices were more than offset by lower sales volumes and higher unit operating costs and royalty expense.
Gross profit in the first quarter from Teck's steelmaking coal business unit was $196 million compared with $246 million a year ago.
Adjusted profit attributable to shareholders of the company was $326 million or $0.61 per share in Q1 2021, an increase of 247% compared to the same period last year. Adjusted EBITDA was $967 million in Q1 2021, an increase of 59% compared to the same period last year.
"Strong first quarter operational performance, in line with plan, and higher commodity prices contributed to a very solid start to 2021," said president and CEO Don Lindsay.