mardi 27 octobre 2020

Teck profit drops by almost 67% on weak coal prices

Teck Resources (TSX:TECK.A | TECK.B)(NYSE:TCK), Canada’s largest diversified miner, saw third-quarter adjusted profit fall by 66.6% as steelmaking coal prices collapsed in the period and covid-19-related restrictions continued to hit the commodities market.

The Vancouver-based miner said coking coal’s sale price decreased to $67 per tonne in the July-September quarter. Adjusted prices are expected to fall even further over the remainder of 2020, Teck said, adding it anticipated the commodity would end the year below $60 per tonne.

The covid-19 pandemic has wreaked havoc on the commodities market in different fronts. Companies have been affected by isolated outbreaks, government-mandated shutdowns and lower demand for many commodities, which has forced them to shut mines and cut production.

Teck said that all of its mines had recovered from pandemic-triggered production disruptions. Labour intensive activities such as maintenance, mine operations and projects, however, continue to be impacted by ongoing safety protocols, the miner said.

The company expensed $130 million in costs related to the temporary suspension of its Quebrada Blanca Phase 2 (QB2) expansion project in Chile.

Teck noted construction work at the copper mine was being ramped up and it now expectis the project to be about 40% complete by year-end.

More to come



from MINING.COM https://ift.tt/37LxHji

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