- Teck Resources Ltd (TSX:TECK) has announced their Q1 2020 results
- Teck Resources has beaten guidance by 400,000 tonnes despite massive COVID-19 related disruptions
- Adjusted site costs are around C$65 per tonne for the quarter, significantly down on expectations
- The company focused on sales of finished coal at all mines, supporting higher sales while reducing costs
- Teck Resources Ltd (TECK) is down 5 per cent at $10.11 per share, with a market cap of $5.5 billion
Teck Resources Ltd (TSX:TECK) has announced their 2020 first-quarter results, exceeding coal sales guidance by 400,000 tonnes despite huge COVID-19 disruptions.
Teck Resources exceeded guidance for first quarter coal sales, estimated at 5.6 million tonnes, exceeding the guidance of 4.8 to 5.2 million.
However, this comes after a historically bad 2019 for Teck, who were hit with a litany of issues last year.
Production was halted several times as blockades related to the proposed Frontier Mine disrupted production, as did severe weather.
The company is plugging away with the upgrades at their Neptune facility, where they expect the new shipload, stacker and reclaimer, and single dumper replacement to be commissioned around year end.
Completion of this project is expected by the first quarter of 2021, with the new double dumper expected to be operations by the second quarter of 2021.
The company’s CEO and President, Don Lindsay, said: “Notwithstanding the challenges in the month of March related to COVID-19, all of our operations remain in production and our steelmaking coal results significantly exceeded guidance.”
“We remain focused on ensuring we have the necessary measures in place to safeguard the health and safety of our people and communities while maintaining safe operations,” he added.
The company is currently managing the impacts of the COVID-19 pandemic.
The companies Quebrada Blanca Phase 2 project had construction suspended on March 18, with all non-essential employees demobilised.
The company has implemented several preventative measures, including work from home protocols, production site screenings, travel bans and other measures.
The company has instigated a temporary slowdown of operations and a reduction of work crews to 50 per cent of regular levels at steelmaking goal and copper operations.
Teck Resources Ltd (TECK) is down 5 per cent at $10.11 per share, as of 1:20pm EST.