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Teck (TSX:TECK.A) breaks quarterly records

Mining
TSX:TECK.A
27 July 2022 15:45 (EDT)
Teck Resources - CEO, Donald Lindsay

Source: Bloomberg

Teck Resources Limited (TECK.A) has shared unaudited second quarter results announcing its fourth consecutive quarter of record-setting EBITDA and profitability.

The company stated its adjusted profit attributable to shareholders was a record-breaking $1.8 billion, more than five times higher than the same period last year.

“[The results] driven by strong commodity prices in the quarter, which enabled us to complete $572 million in share buybacks and pay down a further US$650 million in outstanding debt,” Don Lindsay, President and CEO of Teck, said.

Its adjusted EBITDA was a quarterly record $3.3 billion, which is over three times higher than last year’s report for the same period.

Teck claims it generated $2.9 billion in cash flow from operations and purchased US$650 million of its outstanding term notes and ended the quarter with a cash balance of $2.7 billion.

“Our solid operational performance, strong balance sheet and $8.4 billion in liquidity all put Teck on a very strong footing as we manage through inflationary pressures and a slowdown in the global economy,” Lindsay said.

The company’s copper business unit gross profit increased 5.00 per cent year-over-year, and its zinc business unit reported a gross profit of more than doubled from last year.

Teck stated its capital cost estimate before COVID-19 impacts remains unchanged from last year’s guidance of US$5.26 billion with up to 5.00 per cent additional contingency. However, with COVID-19 impacts costs ran up to US$1.5 billion.

Teck Resources Limited (TECK.A) class A multiple voting shares are up 1.34 per cent trading at $34.76 per share as of 3:34 p.m. ET.


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