Canadian mining company Teck Resources announced its third quarter 2023 financial results. Affected by falling steelmaking coal and zinc prices, as well as reduced sales of steelmaking coal and Highland Valley copper mine, Teck Resources' Q3 profit performance fell short of market expectations.
The financial report shows that Teck Resources’ Q3 revenue was CAD 3.599 billion, a decrease of 15.5% from CAD 4.260 billion in the same period last year. Adjusted profit attributable to shareholders was CAD 399 million, a decrease of 56.8% from CAD 923 million in the same period last year; adjusted earnings per share was CAD 0.76, lower than market expectations of CAD 1.09, compared with CAD 1.74 in the same period last year. Canadian dollar.
The financial report shows that Teck Resources’ Q3 copper production was 72,000 tons, sales volume was 69,000 tons, and the average price was US$3.79/lb; steelmaking coal production was 5.5 million tons, sales volume was 5.2 million tons, and the average price was US$229/ton. (a year-on-year decrease of 25%); the output of zinc concentrate was 153,000 tons, and the sales volume was 296,000 tons; the output of refined zinc was 67,000 tons, and the sales volume was 68,000 tons, with an average price of US$1.10/pound (a year-on-year decrease of 26%).
Teck Resources also raised its capital cost guidance for its QB2 copper project in Chile to $8.6-8.8 billion from a previous forecast of $8.0-8.2 billion, adding that the company was working to mitigate risks and cost pressures.
In addition, Teck Resources lowered its copper production forecast for 2023 from 330,000-375,000 tons to 320,000-365,000 tons, and lowered its steelmaking coal production forecast for 2023 from 24-26 million tons to 23-23.5 million tons.
It is worth mentioning that earlier this year, well-known commodity trader Glencore (GLNCY.US) sought to fully acquire Teck Resources to adjust its product structure. Glencore plans to merge its metals and coal businesses into two new companies after acquiring Teck Resources. However, Teck Resources has repeatedly rejected Glencore’s acquisition conditions.