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(Kitco News) - Teck Resources (TSX: TECK.A and TECK.B) (NYSE: TECK) yesterday announced adjusted profit attributable to shareholders of C$930 million in Q1 2023, which compares to adjusted profit of C$1,620 in Q1 2022.
The company also reported profit from continuing operations attributable to shareholders of C$1.2 billion in Q1 2023 (Q1 2022: C$1.5 billion); adding that adjusted EBITDA was C$2.0 billion in Q1 2023 (Q1 2022: C$3.0 billion), "driven by continued robust commodity prices and strong steelmaking coal sales volumes."
"We generated cash flows from operations of C$1.1 billion in the quarter, ending with a cash balance of C$2.3 billion. Our liquidity as at April 25, 2023 is C$8.0 billion, including C$2.6 billion of cash," the company said.
CEO Jonathan Price commented, "We had a positive start to the year with strong financial performance in the first quarter driven by strong commodity prices and steelmaking coal sales.
"We achieved a number of significant milestones in our copper growth strategy this quarter including first copper concentrate production at QB2, the cornerstone of our copper growth strategy, while making advances across our pipeline of near and medium-term projects. The progress in our copper growth pipeline reinforces the underlying value and optionality in our base metals business."
Teck added that there has been no change in its previously issued annual guidance, with the exception of QB2 capital cost guidance.
"The start of Line 1 commissioning commenced in January; however, our first copper milestone was not achieved until late March. This delay, combined with recent foreign exchange impacts, has resulted in pressure on our project capital cost guidance for QB2 which could increase total capital costs for the project to US$8.0 to $8.2 billion. Over 30% of the increase from our previously disclosed guidance relates to non-controllable foreign exchange impacts. Significant efforts are ongoing to mitigate the cost pressures," Teck explained in a press release.
Teck is one of Canada's leading mining companies. The company's major business units focused on copper, zinc, and steelmaking coal.
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