A surge in copper and coal prices helped B.C.’s biggest miner post strong results in 2011’s first quarter.
On Monday, Vancouver-based Teck Resources (TSX:TCK.B) posted $1.1 billion in gross profit in the first quarter, a figure that was 30% higher than the same quarter last year.
Despite a number of setbacks at the start of the year, including strike action, harsh weather conditions and transportation issues, Teck president and CEO Don Lindsay said a strong commodities market helped the company pull through.
“The increase was due mainly to significant increases in the prices of coal and copper, notwithstanding lower sales volumes of coal,” Lindsay said.
“The quarter did present its challenges, with an unusual number of operating issues affecting our production in both copper and coal, and adverse weather conditions affecting our rail and port services.”
Cash flow in the first quarter was up 47% to $754 million compared with 2010’s first quarter.
Although a strike at its Elkview mine cut production by approximately one million tonnes of coal in the first quarter, Teck said higher prices would continue to help the company publish positive results.
“We are pleased that the strike at our Elkview coal mine was settled earlier this month, and with the benchmark coal price expected to be about US$330 per tonne for our highest quality products, we anticipate improved earnings from coal in the second quarter,” said Lindsay.
At press time, Teck’s shares were up 6% to $51.70.