Teck reports unaudited 1Q16 results
April 26, 2016
Teck Resources Ltd has reported profit attributable to shareholders of CAN$94 million (CAN$0.16/share). Adjusted profit attributable to shareholders was CAN$18 million, or CAN$0.03 per share.
“Again our operations performed well by reducing our costs while maintaining production volumes,” said Don Lindsay, President and CEO. “Notwithstanding that the commodity cycle continues to be challenging, we are encouraged by the change in direction in steelmaking coal and zinc prices.”
- Profit attributable to shareholders was CAN$94 million and EBITDA was CAN$517 million in 1Q.
- Gross profit before depreciation and amortisation was CAN$464 million in the first quarter compared with CAN$685 million in 1Q15.
- Cash flow from operations was CAN$373 million in 1Q16 compared with CAN$374 million a year ago.
- The company has reached agreements with the majority of its steelmaking coal customers for 2Q16, based on a quarterly benchmark of CAN$84/t for the highest quality product, and expects total sales in 2Q, including spot sales, to be at least 6.5 million t of steelmaking coal.
- Construction of the Fort Hills oil sands project is more than 55% complete and progressing substantially on budget and in accordance with the project schedule.
- The company continues to achieve significant reductions of its cash unit costs at our operations. Steelmaking coal unit costs, including transportation charges, decreased to CAN$77/t in 1Q, while copper cash unit costs after by-product credits declined to US$1.29 per pound.
- All operations were cash positive after sustaining capital and capitalised stripping in 1Q, with the exception of Pend Oreille.
- Union employees at Antamina ratified a new three-year labour agreement in January and union employees at Coal Mountain ratified a new four-year labour agreement in March.