View of Teck Trail from Jubilee Park. Photo: Trail Times

View of Teck Trail from Jubilee Park. Photo: Trail Times

Teck Trail reports $7M third quarter loss

Overall number an improvement from a reported $20-million loss for the third quarter of 2019

Teck has reported a $7-million loss in the third quarter at the Trail operation.

The smelter would have posted a gross profit of $14-million over the three months of July, August and September if not for depreciation and amortization.

The overall number, however, is still an improvement from a reported $20-million loss for the third quarter of 2019.

Read more: What’s the deal with the dam?

Read more: Slowing market has Teck closing Pend Oreille mine

The company’s financial report, released Oct. 26, shows production of refined zinc in Trail increased six per cent to 76,400 tonnes from one year ago, though 2019 production was impacted by equipment failure in the zinc refinery.

Refined lead production of 18,200 tonnes in the third quarter at Teck Trail was 1,100 tonnes higher than the same period last year.

Silver production decreased to 2.6 million ounces compared with 3.5 million ounces a year ago primarily as a result of lower silver contained in concentrate feeds.

At Red Dog Operations, zinc and lead production in the third quarter decreased by 14 per cent and nine per cent respectively, compared to a year ago.

The company says the lower production was primarily due to lower ore grades as expected in the mine plan as well as reduced mill throughput.

Property, plant and equipment expenditures include $61 million for sustaining capital, of which $5 million relates to Trail Operations and $56 million relates to Red Dog.

Operating costs before changes in inventory in the third quarter were three per cent lower than a year ago at $118 million, primarily due to lower supplies and maintenance costs.

The report shows gross profit from Teck’s overall zinc business unit was $184 million in the third quarter compared with $207 million a year ago.

The company says uncertainty remains over the extent and duration of impacts that COVID-19 may have on demand and prices for Teck commodities, as well as on its suppliers, customers and employees and on global financial markets.

Read more: Why is Teck Trail essential during a pandemic?

Read more: COVID-19 case confirmed at Teck Trail

Reported impacts on Teck’s business include: global workforce and contractors continue to work safely and productively with challenges associated with the COVID-19 pandemic to minimize the spread of the virus; protocols remain in place with a continued focus on preventative measures, controls and compliance, and the integration into “new normal” of operations and planning; all mines have recovered from COVID-19 production disruptions in the second quarter, though labour intensive activities such as maintenance, mine operations, and projects continue to be impacted by COVID-19 safety protocols; $130 million in costs was expensed in the quarter relating to the temporary suspension and remobilization of the QB2 project after suspension due to COVID-19 in March 2020.

(QB2 refers to Quebrada Blanca Phase 2, a copper project in the northern region of Chile).

“We made significant progress during the quarter on our priority projects, including safely ramping back up construction at our QB2 project (Chile) and advancing the Neptune Bulk Terminals upgrade in line with schedule and budget. Our financial performance recovered strongly from a second quarter that was significantly negatively impacted by COVID-19, and despite the decline in realized steelmaking coal prices, we posted gains in profitability and operating cash flows,” Don Lindsay, President and CEO said in the report.

“Across our business, our people have adapted to the new normal of operating through the pandemic, staying focused on health and safety while continuing to responsibly produce materials essential to the global economic recovery,” said head of Teck, Don Lindsay.

In the third quarter, Teck’s profit attributable to shareholders was $61 million, or $0.11 per share, compared with $369 million, or $0.66 per share, in the same period a year ago.



newsroom@trailtimes.ca

Like us on Facebook and follow us on Twitter

BusinessCity of Trailtech industry

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19. (Image courtesy CDC)
47 new COVID-19 cases in Interior Health region

1,538 total cases, 399 are active, ten in hospital

COVID-19. (Image courtesy CDC)
Interior Health reports 65 new cases of COVID-19

Province-wide, there are 887 new cases of the virus

The current state of the Royal Hotel. (Photo Contributed by Richard Leeks)
‘No one is willing to step up to take any responsibility’: Royal owners plow on with renovictions

Heat, kitchen appliances, doors, running water and WiFi have been allegedly removed

RDEK reminds public to register for their emergency notification system. File photo.
RDEK reminds residents to register for East Kootenay Evacuation Notification System

Provincial Alert system cannot be used for local emergencies

City of Fernie city hall. (Scott Tibballs / The Free Press)
City of Fernie: New orders a challenge, but community is supportive

Mayor Qualizza said that the new public health orders were an opportunity to safeguard the winter season

(Dave Landine/Facebook)
VIDEO: Dashcam captures head-on crash between snowplow and truck on northern B.C. highway

Driver posted to social media that he walked away largely unscathed

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Menno Place. (Google Street View image.)
B.C. care home looks to hire residents’ family members amid COVID-19-related staff shortage

Family would get paid as temporary workers, while having chance to see loved ones while wearing PPE

A man walks by a COVID-19 test pod at the Vancouver airport in this undated handout photo. A study has launched to investigate the safest and most efficient way to rapidly test for COVID-19 in people taking off from the Vancouver airport. The airport authority says the study that got underway Friday at WestJet’s domestic check-in area is the first of its kind in Canada. THE CANADIAN PRESS/HO, Vancouver Airport Authority *MANDATORY CREDIT*
COVID-19 rapid test study launches at Vancouver airport for departing passengers

Airport authority says that a positive rapid test result does not constitute a medical diagnosis for COVID-19

114 Canadians were appointed Nov. 27 to the Order of Canada. (Governor General of Canada photo)
Indigenous actor, author, elder, leaders appointed to Order of Canada

Outstanding achievement, community dedication and service recognized

Most Read