Canada-based Teck Resources reported a solid operational performance along with success on major projects during Q2 2021 due to improving market conditions
The company provided updated guidance with zinc production slated to reach 605,000-630,000mt, steelmaking coal output at 25-26mn mt, and copper production projected at 275,000-290,000mt for 2021. Teck’s sales outlook for steelmaking coal is 5.7-6.1mn mt for Q3 2021.
The miner achieved its best quarterly progress to date at its flagship QB2 copper growth project due to COVID-19 pandemic improvement along with vaccination rates in Chile improving, driving project momentum into Q3.
The Neptune port upgrade project is operating and ramping up to full capacity, with the new site being added to the company’s logistics chain, which will cut costs and improve performance.
Teck’s zinc unit had a strong operating performance in Q2 with a 67pc boost in zinc production at its Red Dog operations versus the same period last year. Overall zinc concentrate production increased 79pc to 168,000mt in Q2 2021 compared to 94,000mt in Q2 2020.
The company’s copper production increased 22pc to 72,000mt in Q2 2021 compared to 59,000mt in Q2 2020. Teck’s steelmaking coal production increased 25pc to 6.4mn mt in Q2 2021 against 5.1mn mt in Q2 2020.
Sales of zinc concentrate fell 35pc to 65,000mt in Q2 2021 compared to 101,000mt in Q2 2020. Copper sales increased 20pc to 66,000mt in Q2 2021 versus 55,000mt in the prior-year quarter.
Teck’s steelmaking coal sales increased 24pc to 6.2mn mt in Q2 2021 compared to 5mn mt in Q2 2020, with about 2mn mt sold to China at much higher prices than FOB Australia prices. The FOB Australia and CFR China price evaluations rose considerably in later Q2 with impacts set to affect Q3 performance.
The company’s revenue increased 49pc to CAD$2.56bn ($2.03bn) in Q2 2021 compared to CAD$1.72bn in Q2 2020. The miners adjusted EBITDA was CAD$989mn in Q2 2021, up 104pc compared to CAD$485mn in the same period last year.
($1 = CAD$1.26)