Teck Resources Reports $ 305 Million First Quarter Profit, Better Outlook on 10-Year High Copper Price


VANCOUVER – Copper prices which have hit 10-year highs in recent days are prompting potential partners to eagerly line up to help Teck Resources Ltd. to fund its portfolio of eight copper mining projects, CEO Don Lindsay said on Wednesday.

VANCOUVER – Copper prices which have hit 10-year highs in recent days are prompting potential partners to eagerly line up to help Teck Resources Ltd. to fund its portfolio of eight copper mining projects, CEO Don Lindsay said on Wednesday.

After reporting strong first quarter results and revenue driven by higher copper prices, along with better prices for zinc and tar sands bitumen, Lindsay said on a conference call with financial analysts that the long-term outlook for copper looked good.

“Accelerating copper growth is a cornerstone of our strategy and, by increasing our copper production, we are rebalancing our portfolio towards what is now called ‘green metals’,” he said.

Forecasts that call for growth in global copper demand of 3 to 3.5 percent per year are credible, Lindsay said, given its use in renewables as pressure increases for global decarbonization.

He said Teck’s phone lines had been lit by unsolicited offers from potential partners amid an expected copper shortage later this decade.

“There are some great opportunities where we could bring in a partner and they build it with their capital and their employees and we end up with half a mine or more for free,” he said when speaking. ‘call.

“If it sneaks between QB2 and QB3, then that’s a pretty good situation.”

QB2 is the US $ 5.2 billion expansion of Teck’s Quebrada Blanca Phase 2 copper mine in Chile, which it says has reached over 50% completion despite COVID-19 lockdown setbacks . It is expected to double the company’s copper production after it opens in 2022.

Final sanction of a third phase of the project will not take place until 2026 at the earliest, Lindsay said, once feasibility studies and regulatory approvals have been received.

He said new copper mining projects will generally require a raw material price of at least $ 3.50 a pound. On Tuesday, May’s copper contract came in at around US $ 4.49 a pound, the highest since 2011 and up around 91% from a year ago.

Teck reported first-quarter copper production of 71,700 tonnes, in line with the previous year’s production, but an average price of US $ 3.92 per pound, compared to US $ 2.56.

The Vancouver-based company reported first quarter profit of $ 305 million as higher commodity prices were partially offset by the impact of the stronger Canadian dollar.

The result compares to a loss of $ 312 million in the same quarter last year when Teck recorded an asset impairment charge of $ 474 million related to its interest in the operating Fort Hills oil sands mine. by Suncor Energy Inc.

Revenue for the recent quarter was nearly $ 2.55 billion, up from about $ 2.38 billion a year earlier.

On an adjusted basis, Teck says it made 61 cents per share for the quarter, compared to adjusted earnings of 17 cents per share a year ago.

Teck said he had yet to pay a March $ 60 million fine assessed under the Fisheries Act after pleading guilty to contaminating southeastern British Columbia’s waterways with selenium and calcite from its coal mines.

It ordered a saturated landfill water treatment extension in the first quarter, doubling its capacity to 20 million liters per day.

The company said sales of 6.2 million tonnes of steelmaking coal in the quarter as expected, adding that it expects higher prices on similar volumes in the second quarter.

By Dan Healing in Calgary.

This report by The Canadian Press was first published on April 28, 2021.

Companies in this story: (TSX: TECK.B)

The Canadian Press

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