(Kitco News) - Teck Resources (NYSE: TECK) today announced that adjusted profit attributable to shareholders was a quarterly record $1.8 billion or $3.30 per share in Q2 2022 and more than five times higher than the same period last year.
The company said that profit attributable to shareholders was a quarterly record of $1.7 billion or $3.12 per share in Q2 2022, adding that adjusted EBITDA was also a quarterly record $3.3 billion in Q2 2022 and more than three times higher than the same period last year. Profit before tax was a record $2.7 billion in Q2 2022.
According to the company's statement, profitability in the second quarter improved significantly from a year ago primarily due to continued record high steelmaking coal prices and, to a lesser extent, increased sales volumes across its business units and the weakening of the Canadian dollar.
Teck added that these items were partially offset by an increase in unit operating costs primarily due to higher diesel costs, profit-based compensation and royalties, and inflationary cost pressures on consumables.
The company's copper production of 71,500 tonnes in the second quarter was similar to a year ago, with increased production from Antamina offset by lower production from Highland Valley Copper and Quebrada Blanca cathode operations.
At Teck's Red Dog Operations, zinc production in the second quarter increased slightly, while lead production decreased by 26% or 7,500 tonnes, compared to a year ago. At Trail Operations, refined zinc production was 10% higher than a year ago when planned zinc roaster maintenance was performed.
The company's second quarter sales volumes of 6.3 million tonnes of steelmaking coal were similar to the same period last year, and within the previously disclosed guidance range.
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Realized steelmaking coal prices of US$453 per tonne in the quarter increased from US$144 per tonne in the same period last year and exceeded the previous record of US$357 per tonne realized in the first quarter of 2022.
Teck's 21.3% share of bitumen production of 34,611 barrels per day in the second quarter from Fort Hills increased substantially and was nearly double the same period a year ago due to the ramp up to two train production in the fourth quarter last year.
“This marks Teck's fourth consecutive quarter of record-setting EBITDA and profitability, driven by strong commodity prices in the quarter, which enabled us to complete $572 million in share buybacks and pay down a further US$650 million in outstanding debt," said Don Lindsay, President and CEO. “Our solid operational performance, strong balance sheet and $8.4 billion in liquidity all put Teck on a very strong footing as we manage through inflationary pressures and a slowdown in the global economy."
Teck is one of Canada's leading mining companies, with its major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets.
