Teck reports 2016 first quarter financials

Mining company Teck released their first quarter financial results for January to March 2016.

Mining company Teck released their first quarter financial results for January to March 2016, reporting that all operations, except Pend Oreille, are cash flow positive after capital stripping. Before depreciation and writing off initial company costs, Teck posted a profit of $464 million, compared to $685 million in 2015’s first quarter.

Locally, the Line Creek, Greenhills and Elkview mine operations all saw record production. Line Creek produced more in 2016’s first quarter than in any other quarter of the sites operation. Greenhills and Elkview produced more than any other of their first quarters since their operations began.

Per tonne, steelmaking coal for this quarter was at $102 per tonne. Over the same period last year the price per tonne was $128.

Despite a record breaking quarter for three of the local mines, Teck reported a three per cent lower production rate over the quarter. Teck produced 6.6 million tonnes in the first quarter of 2016. 2015’s first quarter produced 6.8 million tonnes. This was consistent with Teck’s 2016 productions plans, where they intend to focus production on the second half of the year.

Plant, property and equipment expenditures also saw a decrease in cost when compared to last years first quarter. In 2016, the company spent $11 million in the first quarter, down from 2015’s $25 million.

In regards to steelmaking coal, Teck saw a lower gross profit in the first quarter of 2016 compared to 2015.

President and CEO, Don Lindsay, believes the company did well over the first quarter to reduce costs while keeping up with production and is given confidence by the change in direction for steelmaking coal and zinc prices.

“Again our operations performed well by reducing our costs while maintaining production volumes,” said Lindsay in the financial release. “Not withstanding that, the commodity cycle continues to be challenging. We are encouraged by the change in direction in steelmaking coal and zinc prices.

For more detailed information go to Teck.com