Teck has reported a $7-million loss in the third quarter at its Trail operation.
The smelter would have posted a gross profit of $14-million over the three months of July, August and September if not for depreciation and amortization.
The overall number, however, is still an improvement from a reported $20-million loss for the third quarter of 2019.
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The company’s financial report, released Oct. 26, shows production of refined zinc in Trail increased six per cent to 76,400 tonnes from one year ago, though 2019 production was impacted by equipment failure in the zinc refinery.
Refined lead production of 18,200 tonnes in the third quarter at Teck Trail was 1,100 tonnes higher than the same period last year.
Silver production decreased to 2.6 million ounces compared with 3.5 million ounces a year ago primarily as a result of lower silver contained in concentrate feeds.
At Red Dog Operations, zinc and lead production in the third quarter decreased by 14 per cent and nine per cent respectively, compared to a year ago.
The company says the lower production was primarily due to lower ore grades as expected in the mine plan as well as reduced mill throughput.
Property, plant and equipment expenditures include $61 million for sustaining capital, of which $5 million relates to Trail Operations and $56 million relates to Red Dog.
Operating costs before changes in inventory in the third quarter were three per cent lower than a year ago at $118 million, primarily due to lower supplies and maintenance costs.
The report shows gross profit from Teck’s overall zinc business unit was $184 million in the third quarter compared with $207 million a year ago.
The company says uncertainty remains over the extent and duration of impacts that COVID-19 may have on demand and prices for Teck commodities, as well as on its suppliers, customers and employees and on global financial markets.
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“Across our business, our people have adapted to the new normal of operating through the pandemic, staying focused on health and safety while continuing to responsibly produce materials essential to the global economic recovery,” said head of Teck, Don Lindsay.
In the third quarter, Teck’s profit attributable to shareholders was $61 million, or $0.11 per share, compared with $369 million, or $0.66 per share, in the same period a year ago.