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Teck boosts adjusted profit 281% in Q2 2021

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(Kitco News) - Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK), one of Canada’s leading mining companies, announced Monday that adjusted profit attributable to shareholders was $339 million or $0.64 per share in Q2 2021, an increase of 281% compared to the same period last year.

Profit attributable to shareholders was $260 million, or $0.49 per share in Q2 2021, compared to a loss attributable to shareholders of $149 million, or $0.28 per share, in the second quarter of 2020.

The company said that its financial results have significantly improved compared to the same period last year supported by the positive market backdrop of improved commodity prices, production in line with plan across Teck’s business units and sales meeting the company’s Q2 2021 guidance.

Teck added that its copper business unit had a strong Q2 2021 with a 198% increase in gross profit before depreciation and amortization compared to the same period last year, supported by an average realized copper price of US$4.39 per pound and copper production of 72,100 tonnes, in line with plan.

The company’s zinc business unit had a strong Q2 2021 operating performance with an increase in zinc production at Teck's Red Dog Operations of 67% compared to the same period last year, resulting in an increase to the company’s 2021 annual zinc in concentrate production guidance range.

Sales of steelmaking coal were 6.2 million tonnes in Q2 2021, with approximately 2 million tonnes sold to China at significantly higher prices than FOB Australia prices. The FOB Australia and CFR China price assessments increased sharply in the latter half of Q2, the impact of which will be reflected in its Q3 financial performance, the company added.

The company said that 2021 annual guidance for its copper business unit is unchanged at 275 – 290 thousand tonnes. Teck added it has increased its zinc in concentrate production guidance to 605 - 630 thousand tonnes for 2021 and lowered zinc net cash unit costs guidance to 0.35 – 0.40 CAD$/t as a result of the strong operating performance at Red Dog.

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