On February 23rd, Tektronix Resources Limited (Toronto Stock Exchange symbol: TECK.An and TECK.B, NYSE symbol: TECK) ("Teck") reported unaudited annual and fourth quarter results for 2021. Adjusted earnings attributable to shareholders reached a record $1.4 billion, or $2.58 per share, in the fourth quarter of 2021, more than five times the level in the same period last year, and $3.1 billion, or $5.74 per share, for the full year. The adjusted EBITDA reached a record $2.5 billion in the fourth quarter of 2021, more than three times that of the same period last year and $6.6 billion for the whole year. Pre-tax profit in the fourth quarter of 2021 was a record $2.2 billion, compared with $4.5 billion for the full year.
President and CEO Don Lindsay (Don Lindsay) said, "We set a number of financial records at the end of 2021, including our highest quarterly and annual adjusted EBITDA and adjusted shareholder attributable profits. Tektronix's record performance is driven by a continued positive commodity price environment and thanks to the great resilience of our people. They persevere in heatwaves, wildfires, floods, freezing temperatures and global pandemics to continue to safely and sustainably produce the basic resources the world needs. "
Tektronix Resources says the overall progress of its QB2 copper project has reached 77 per cent.
In addition, Tektronix noted that gross margins in its copper business unit rose 20 per cent, thanks to an average copper price of $4.46a pound and production of 72600 tonnes. The gross profit of the zinc business unit rose 48 per cent, supported by an average zinc price of $1.52 per pound. The actual price of steelmaking coal is $351a tonne, increasing the gross profit of its steelmaking coal business by $1.4 billion.
In 2021, Tektronix reached a multi-year collective agreement with Antamina, Quebrada Blanca, Fording River and Elkview operators, and reached an agreement with Highland Valley Copper operators after the end of the year.
Copper sales fell 11% in the fourth quarter compared with the same period last year due to the impact of floods in British Columbia on sales at the Highland Valley copper mine. Sales of zinc fell 11% compared with the same period last year, due to historic weather delays in, Red Dog and operational problems with Trail at the start of the shipping season. Sales of steelmaking coal were 5.1 million tons, down 1.5 million tons from the same period last year, due to unprecedented disruptions in logistics chains caused by floods in British Columbia and extremely cold weather at the end of December.
Inflationary cost pressures, especially diesel prices, factory steel, supplies and replacement parts, and labor costs affected Tektronix's operating costs across business units in the fourth quarter. In addition, royalties and profit returns linked to profitability increased operating costs in the fourth quarter. The cost of transporting steelmaking coal also increased in the fourth quarter, as floods and extremely cold weather in British Columbia also increased the cost of transporting steelmaking coal.
