#Mining Stock
Teck (TSX: TCK.A and TCK.B, NYSE: $TCK) Reports Second Quarter Profit
Stock Closes in on
52-week high
Point
Roberts, WA, July 28 , 2016 –
Investorideas.com, a global news source and investor resource covering actively
traded sectors reports mining stock Teck Resources Limited (TSX: TCK.A and
TCK.B, NYSE: TCK) issued second quarter results in today’s session and the
stock is trading up , currently at $15.29
Up 0.92(6.39%) on the NYSE. The stock had a day high of $15.46- just under its
52-week high.
Read this release in full
at http://www.investorideas.com/news/2016/mining/07285.asp
Teck Reports
Unaudited Second Quarter Results for 2016
Summary -
All
dollar amounts expressed in this news release are in Canadian dollars unless
otherwise noted.
Teck
Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) ("Teck") reported
profit attributable to shareholders of $15 million ($0.03 per share) compared
with $63 million ($0.11 per share) a year ago. Adjusted profit attributable to
shareholders was $3 million, or $0.01 per share, compared with $79 million, or
$0.14 per share in 2015.
"While
the commodity cycle continues to be challenging, we are starting to see some
positive changes in the direction of zinc and steelmaking coal prices,"
said Don Lindsay, President and CEO. "We are pleased with the performance
of our operations, which have continued to reduce costs while maintaining
production volumes. In addition, through recent transactions, we now have no
substantial bond maturities for five years."
Highlights and
Significant Items
•Profit
attributable to shareholders was $15 million and EBITDA was $468 million in the
second quarter of 2016 compared with $63 million and $596 million,
respectively, in the second quarter of 2015.
•Gross
profit before depreciation and amortization was $536 million in the second
quarter compared with $676 million in the second quarter of 2015.
•Cash
flow from operations was $339 million in the second quarter of 2016 compared
with $335 million a year ago.
•We
extended the maturity of US$1.0 billion of our US$1.2 billion revolving credit
facility by two years, from June 2017 to June 2019. We also issued US$1.25
billion of five and eight-year senior unsecured notes maturing in 2021 and
2024, using the proceeds to buy back notes maturing in 2017, 2018 and 2019.
•Our
liquidity remains strong at $5.4 billion inclusive of $1.4 billion in cash at
July 27, 2016 and US$3.0 billion of undrawn, committed credit facilities. Our
cash balance is in line with expectations and, given current prices and
exchange rates, we anticipate that we will exceed our original goal and end the
year with more than $700 million.
•We
continue to achieve significant reductions of our cash unit costs at our
operations. Steelmaking coal unit costs, including transportation charges,
decreased to CAD$76 (US$59) per tonne in the second quarter compared with
CAD$83 (US$68) per tonne a year ago, while copper cash unit costs after
by-product credits declined to US$1.34 per pound from US$1.49 per pound from a
year ago.
•We
have reached agreements with the majority of our steelmaking coal customers for
the third quarter of 2016, based on a quarterly benchmark of US$92.50 per tonne
for the highest quality product, and we expect total sales in the third
quarter, including spot sales, to be at least 6.8 million tonnes of steelmaking
coal. We expect our realized price as compared to the current quarterly
benchmark to be consistent with the typical range we normally achieve.
•Construction
of the Fort Hills oil sands project has surpassed 60% completion.
•In
early July we acquired the 2.5% minority interest stake in our Highland Valley
Copper mine for $33 million. We now have a 100% interest in the mine.
•We
were named to the Best 50 Corporate Citizens in Canada ranking for the fourth
consecutive year by media and investment research company Corporate Knights.
The Best 50 ranks companies based on 12 sustainability metrics, including
carbon productivity, gender leadership diversity, health and safety performance
and pension fund quality.
•We
have updated our production and cash unit cost guidance for 2016 as a result of
our strong first-half performance.
◦Steelmaking
coal production is now expected to be 1.0 million tonnes higher and in the range
of 26 to 27 million tonnes.
◦Copper
production is now revised to 310,000 to 320,000 tonnes.
◦Mined
zinc production is now revised to 645,000 to 665,000 tonnes, including
co-product zinc production from our copper business unit.
◦Cost
of sales at our steelmaking coal operations are expected to be $42 to $46 per
tonne, down from $45 to $49 per tonne.
◦Copper
unit costs after by-product credits are expected to be US$1.40 to US$1.50 per
pound, down from US$1.50 to US$1.60 per pound.
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