Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian miner Teck's profit disappoints, input costs rise

07/27/2021 | 02:09pm EDT
FILE PHOTO: Mining samples are displayed at a Teck Resources booth at the PDAC annual conference in Toronto

(Reuters) -Teck Resources Ltd on Tuesday flagged a rise in input costs and missed estimates for second-quarter profit, sending shares of the Canadian miner down nearly 5% as its copper sales disappointed.

Copper production rose sequentially, but sales of about 66,000 tonnes fell short of CIBC's estimate of 66,300 tonnes, hit by port congestion at the miner's Highland Valley operations, the brokerage said.

The red metal has been in high demand as global industrial activity picks up from pandemic lows, with government stimulus, tightened supply and the rise of electric vehicles boosting prices further.

Commodities such as steel, crude oil and natural gas have also become more expensive, pushing up Teck's supply costs for fuel, mining equipment, tires and explosives.

The cost inflation is expected to put "modest upward pressure" on Teck's cash unit costs in the second half of the year, the company said.

The miner also raised its estimated COVID-19-related costs for the Quebrada Blanca Phase 2 project in Chile to about $600 million, from a range of $450 million to $500 million earlier. Construction at the project advanced despite the country's sharp rise in coronavirus cases, and first production is on track for the second half of 2022, it said.

Teck slashed its annual forecast for bitumen production by 28.9% at midpoint, due to a slower ramp-up at its Fort Hills oil sands mining and processing operation in Alberta. The company also cut its steelmaking coal production forecast by 1.9% at midpoint due to wildfires in British Columbia.

Its adjusted quarterly profit of 63 Canadian cents per share fell below analysts' estimate of 65 Canadian cents, according to Refinitiv IBES.

($1 = 1.2544 Canadian dollars)

(Reporting by Sahil Shaw in Bengaluru; Editing by Amy Caren Daniel and Devika Syamnath)

By Sahil Shaw


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL 0.94% 78.01 Delayed Quote.46.73%
S&P GSCI CRUDE OIL INDEX 0.69% 405.4586 Delayed Quote.48.97%
S&P GSCI NATURAL GAS INDEX 1.66% 243.4685 Delayed Quote.89.64%
TECK RESOURCES LIMITED 0.00% 31.34 Delayed Quote.35.67%
WTI 0.93% 73.961 Delayed Quote.49.32%
Latest news "Economy & Forex"
03:16aQuad nations to focus on clean-energy supply chain, says Australia PM
RE
03:12aMINISTRY OF MICRO SMALL AND MEDIUM ENTERPRISES OF : Coir Industry proliferates and flourishes in non-conventional regions
PU
02:22aMOP PLANS $4B INVESTMENT IN ILAM PROVINCE : Min.
PU
02:22aNational Rural Livelihoods Project - P104164
PU
02:22aRI-Regional Pastoral Livelihoods Resilience Project - P129408
PU
02:22aSouth karakalpakstan water resources mgmt improvement - p127764
PU
01:49aChinese coal firms meet to address winter supply challenges
RE
01:32aIncome Tax Department conducts searches in Tamil Nadu
PU
01:32aMINISTRY OF FINANCE OF REPUBLIC OF INDIA : Income Tax Department conducts searches in Gujarat
PU
01:12aNIOC NATIONAL IRANIAN OIL : CEO Appointed
PU
Latest news "Economy & Forex"