Teck to Slow Reopening of Quintette Coal Mine as Prices Fall

Teck Resources Ltd. (TSX:TCK.A,NYSE:TCK) released its unaudited results for the second quarter of 2013, noting that its adjusted profit came in at $197 million, down from $398 million in 2012. Don Lindsay, president and CEO of the company, commented that prices for Teck’s products, particularly steelmaking coal, have continued to weaken; as a result, it is “slowing” the reopening of the Quintette coal mine.

According to the press release, results highlights include:

• Gross profit before depreciation and amortization was $871 million in the second quarter compared with $1.1 billion the second quarter of 2012.
• Cash flow from operations, before working capital changes, was $584 million in the second quarter compared with $874 million a year ago.
• Profit attributable to shareholders was $143 million and EBITDA was $670 million in the second quarter.
• Our cash balance was $2.8 billion at June 30, 2013.
• We are taking steps to reduce capital spending in light of market conditions, slowing the start of the Quintette mine reopening and delaying development of the Quebrada Blanca Phase 2 expansion project.
• To date we have reached agreements with our coal customers to sell 6.4 million tonnes of coal in the third quarter of 2013 at an average price of US$143 per tonne. We expect to conclude additional sales over the course of the quarter.

Click here to read the full Teck Resources Ltd. (TSX:TCK.A,NYSE:TCK) press release.