Teck boasts 314% attributable profit growth in Q2
Canadian miner Teck Resources managed to deliver another quarter of strong operational and financial performance in the three months ended June 30, generating significant earnings and robust cash flow on the back of strong copper sales volumes, a favourable commodity price environment and disciplined execution across its operations.
Teck president and CEO Jonathan Price says the company achieved a third consecutive quarter of stable operating performance at the QB mine, which demonstrates the progress made to strengthen reliability and consistency at one of the world's most important new copper operations.
"These results reinforce the strength of our business and position us well to advance the planned merger with Anglo American to create a global critical minerals champion with the financial strength, operational capability and portfolio quality to deliver significant value for shareholders," Price adds.
Teck's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) totalled $2.2-billion in the second quarter, which marked a 204% increase on the second quarter of last year. Ebitda in the prior corresponding quarter amounted to $722-million.
The group's adjusted profit attributable to shareholders increased from $187-million, or $0.38 apiece, in the second quarter last year to $948-million, or $1.93 apiece, in the reporting quarter.
The profit attributable to shareholders was $854-million, or $1.74 apiece, compared to attributable profit of $206-million in the same quarter last year - marking a 314% increase.
Cash flow from operations of $1.7-billion increased Teck's net cash position by $756-million during the second quarter this year, with its liquidity standing at $10.3-billion at the end of June - including $6.1-billion of cash.
Notably, the company's copper segment generated gross profit before depreciation and amortisation of $1.8-billion in the second quarter, compared with $673-million in the same quarter last year. This was driven by higher production and record copper prices, which averaged $6.05/lb in the quarter under review.
Teck produced 135900 t in the quarter, which marked a 25% year-on-year increase, with production increases having been recorded across all of its copper operations.
The zinc segment generated gross profit before depreciation and amortisation of $353-million in the reporting quarter, compared to $159-million in the same quarter last year. This segment also benefited from higher commodity prices and continued focus on cashflow generation through Teck's optimised feed strategy at the Trail Operations.
Teck remains on track to produce between 455 000 t and 530 000 t of copper in the full year, and between 410000 t and 460000 t of zinc, which would deliver between 190000 t and 230000 t of refined zinc.
