- Canadian mining stock Teck Resources Ltd. (TSX:TECK.A and TECK.B; NYSE:TECK) missed Q1 profit estimates on Thursday.
- The miner stated it earned a profit attributable to shareholders of C$343 million, compared with a profit of C$1.14 billion in the same quarter last year
- The company reported an adjusted profit of $0.75 in Q1, compared with analysts’ average estimate of $0.85 per share
- Teck Resources last traded at C$62.20 per share
Canadian mining stock Teck Resources Ltd. (TSX:TECK.A and TECK.B; NYSE:TECK) missed Q1 profit estimates on Thursday.
The miner stated it earned a profit attributable to shareholders of C$343 million or 65 cents per diluted share for the quarter ended March 31. This compared with a profit of C$1.14 billion or C$2.18 per diluted share in the same quarter last year. The company reported an adjusted profit of $0.75 in Q1, compared with analysts’ average estimate of $0.85 per share.
Its revenue totalled C$3.99 billion, up from C$3.79 billion in Q1 2023. On an adjusted basis, Teck explained that it earned 75 cents per diluted share from continuing operations, down from C$1.78 per diluted share a year earlier.
The company reiterated full-year copper production of between 465,000 tonnes and 540,000 tonnes, above 296,500 tonnes produced in 2023.
Teck reported a 74 per cent rise in copper production at 99,000 tonnes in Q1 2024, helped by ramp-up in output at its Quebrada Blanca (QB) mine in Chile. As the company increases copper production with the ramp-up of its QB asset and completion of all major construction, its profits were pulled down partly by lacklustre steelmaking coal sales volumes and lower zinc prices.
Teck’s Q1 steelmaking coal sales were 5.9 million tons, compared with 6.2 million tons last year. This was impacted by extreme freezing temperatures in mid-January 2024 that resulted in frozen plant components and unplanned downtime.
“All outstanding major construction at our QB operation was completed in the first quarter, including the shiploader and molybdenum plant, and we marked the first shipment of concentrate from the completed port facility,” Jonathan Price, Teck’s president and CEO said in a news release. “We had strong first quarter performance across our business, generating C$1.7 billion of adjusted EBITDA with steadily increasing quarterly copper production as QB ramp-up advances, and we continued to return cash to shareholders.”
A leading producer of steelmaking coal, Teck announced the sale of that business to Swiss miner Glencore (OTC:GLCNF) late last year, and stated it was shifting its strategy towards building its copper business. All outstanding major construction at QB operations was completed and the molybdenum plant will be ramped up in Q2 2024.
Vancouver-based Teck Resources is one of Canada’s leading mining companies with major business units focused on copper, zinc and steelmaking coal.
Teck Resources (TSX:TECK.A) last traded at C$62.20 per share and its stock is up 3.23 per cent past month, up 5.19 per cent since this time last year.
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