Teck Resources misses quarterly profit estimates, trims copper output forecast

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Teck Resources misses quarterly profit estimates, trims copper output forecast
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Teck reported an adjusted profit of $0.76 per share for the three months ended Sept. 30, compared with the average analyst estimate of $1.09 per share

missed market estimates for third-quarter profit on Tuesday, pressured by lower prices for steelmaking coal and zinc, and reduced sales volumes of steelmaking coal and Highland Valley copper.

The company increased the capital cost guidance for its QB2 copper project in Chile to $8.6-billion to $8.8-billion from $8.0-billion to $8.2-billion previously forecast, adding that efforts are ongoing to mitigate the risks and cost pressures. Teck’s third-quarter steelmaking coal sales were 5.2 million tonnes, missing the company’s forecast due to the impacts of wildfires in British Columbia and labour disruption at ports in B.C.

Teck, which has rejected twice a takeover bid from Swiss trading and mining firm Glencore, said its copper production climbed 8 per cent and copper sales volumes rose 3 per cent compared with the previous year.

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