Swollen copper and coal prices helped B.C.’s biggest miner post a near 90% increase in earnings in the second quarter.
“This quarter was a record quarter for revenue,” Teck Resources (TSX:TCK.B) president and CEO Don Lindsay said during a conference call.
The company, which operates a host of copper, coal and zinc mines throughout the Americas, posted a second quarter profit of $663 million, or $1.12 per share, compared with $347 million [$0.59 per share] for the same period in 2010.
Lindsay said higher prices for coal and copper were the main reason why the company posted improved results, despite lower sales and production volumes in its coal business.
“The very strong quarter is a reflection of the strong fundamentals of our business particularly the higher prices for both coal and copper,” said Lindsay. “And I would note that the second quarter for Teck is traditionally a weaker quarter for us.”
The second quarter also saw Teck ratify new five-year labour agreements at its Fording River and Elkview coal operations in Southeast B.C. (See “B.C. coal producers struggle to increase production amid Australian supply crunch” – issue 1111; February 8 - 14.)
The company also sold its interest in the Carrapateena project in Australia for US$134 million. (See “Teck reconsiders its Australian options” – issue 1065; March 23 - 29.)
Earlier this month, the company issued US$2 billion in notes, with plans to use the proceeds for general corporate
purposes and debt repayment.
As of July 28, Teck had $3.4 billion in cash and short-term investments.
At press time, the company’s shares were down $0.49 to $47.39.
Joel McKay
Twitter:jmckaybiv