Third quarter profits more than doubled this year compared to 2016, according to Teck Resource’s Thursday news release.
Boosted by record zinc production and steelmaking coal, the mining giant reported earnings of $621 million compared to $152 million one year ago. The company attributes the adjusted profit margin to shareholders ($1.08 per share) in the third quarter compared $0.26 per share one year ago.
“We are very pleased with our performance in the third quarter,” said Don Lindsay, President and CEO.
“We achieved strong operating results with our second highest quarterly sales for steelmaking coal and record zinc production at Antamina for the second consecutive quarter.”
Gross profit was $1.1 billion in the third quarter compared with $452 million a year ago.
Teck says its steelmaking coal business was helped by strong operational performance, substantially higher prices and increased sales volumes, partly offset by higher costs.
“With these strong operating results and favourable prices, our adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $1.4 billion,” Lindsay stated. “Just over $700 million higher than in the third quarter of last year.”
The company also reported benefits from higher copper, zinc and lead prices, partly offset by the strengthening loonie. Teck noted copper prices reached a three-year high early in the quarter at US $3.13 per pound, while zinc prices reached a ten-year high in September at just under US $1.50 per pound.
In September, Teck announced an increase in zinc production guidance at Red Dog. The news was positive for Teck Trail Operations because most of the site’s zinc concentrate comes from the Alaskan mine.
Red Dog’s zinc production for 2017 is now expected to be in the range of 525,000 to 550,000 tonnes, up from the prior guidance range of 475,000 to 500,000 tonnes.