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Thursday, October 25, 2018

Teck Resources (TECK) reported earnings on Thur 25 Oct 2018 (b/o)

** charts after earnings **

Teck Resources misses by $0.13, beats on revs; updates guidance
  • Reports Q3 (Sep) earnings of CC$0.80 per share, CC$0.13 worse than the S&P Capital IQ Consensus of CC$0.93; revenues rose 4.4% year/year to CC$3.21 bln vs the CC$3.12 bln S&P Capital IQ Consensus. 
  • "Our annual 2018 steelmaking coal production guidance of 26 to 27 million tonnes remains unchanged, but we currently expect it to be near the lower end of the range. The business unit continues to evaluate raw coal processing opportunities by capturing the latent production capacity of Elk Valley processing plants. As in prior years, annual production volumes can be adjusted to reflect market demand for our products and are subject to adequate rail and port service. With inflationary pressures predominantly affecting diesel costs and the additional mining activity to generate production, we expect our annual site cost of sales in 2018 to be in the range of $60 to $63 per tonne, above our original guidance range of $56 to $60 per tonne. Market fundamentals remain supportive as demonstrated by the continued strength in steel pricing and margins, and coal pricing levels. We are expecting fourth quarter sales to reach ~6.7 million tonnes, subject to the performance of our logistics chain. Continued strong operating performance in the mines and changes in our mine sequence have resulted in an increase in capitalized stripping costs to approximately $500 million, above the previous guidance of $470 million. High productivities and solid performance in the mines has led to blending options and operational flexibility that will enhance the business unit's ability to meet future production targets."

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