Teck posts adjusted profit attributable to shareholders of C$923M in Q3, notes inflationary pressures
(Kitco News) - Teck Resources (TSX: TECK.A and TECK.B, NYSE: TECK) today reported a loss attributable to shareholders of C$195 million (C$0.37 per share) and adjusted profit attributable to shareholders of C$923 million (C$1.77 per share) in Q3 2022.
The company said that its strong financial results in Q3 2022 were offset by the impairment of its interest in Fort Hills, and as a result, the company recorded a loss attributable to shareholders of C$195 million or C$0.37 per share.
Teck added that its copper business unit gross profit declined by 50% from a year ago, primarily due to an 18% decrease in average realized copper prices to US$3.49 per pound and a 12% decrease in sales volumes to 67,300 tonnes due to the timing of shipments.
The company's zinc business unit gross profit increased 9% from a year ago primarily reflecting a 45% increase in zinc sales volumes of 235,200 tonnes from Red Dog, and a 6% increase in average realized zinc prices of US$1.44 per pound.
Teck's steelmaking coal business unit gross profit increased by 37% from a year ago primarily as a result of favourable steelmaking coal prices.
The company also pointed out it continues to face inflationary cost pressures, which have increased its operating costs by 14% compared to the same period last year, adding that approximately half of the operating cost increase relates to diesel costs.
Teck noted that its liquidity is strong at C$8.3 billion as at October 26, 2022, including C$2.9 billion of cash. The company's US$4.0 billion sustainability-linked revolving credit facility is undrawn, and there are no major debt maturities until 2030, it added.
CEO Jonathan Price commented, "In the third quarter, we delivered another consecutive quarter of strong financial results, while returning cash to shareholders and maintaining a robust balance sheet. We also recently announced three value generating transactions that advance our strategy of pursuing industry-leading copper growth and rebalancing our portfolio of high-quality assets to low carbon metals.
"Thanks to our resilience and financial strength, we remain well-positioned to manage through any near-term pressures arising from an overall economic slowdown, while staying focused on advancing our copper growth strategy and returning cash to shareholders."
Headquartered in Vancouver, Teck is one of Canada's leading mining companies with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets.
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