VANCOUVER — Teck Resources Ltd. missed expectations despite posting much stronger second-quarter results, with revenues more than doubling amid improving market conditions.
The Vancouver-based mining company says its net income attributable to shareholders surged to $260 million or 48 cents per diluted share, from a loss of $149 million or 28 cents per share a year earlier.
Adjusted profits were $339 million or 63 cents per share, up 281 per cent compared with $89 million or 17 cents per share in the second quarter of 2020.
The increase is partially attributable to a $147-million reduction in COVID-19 costs and $38 million in inventory writedowns.
Revenues for the three months ended June 30 were $2.56 billion, up from $1.7 billion in the prior year.
Teck Resources was expected to report 65 cents per share in adjusted profits on $2.67 billion of revenues, according to financial data firm Refinitiv.
“We managed through the most acute COVID-19 conditions in Chile since the start of the pandemic while safely achieving our best quarterly progress to date on our flagship QB2 copper growth project," stated CEO Don Lindsay.
He said the situation at the South American facility has improved in recent weeks as high vaccination rates are contributing to a strong momentum heading into the third quarter.
"Our Neptune port upgrade project is operational and ramping up to full capacity, and the new facility is being integrated into our logistics chain, which will reduce costs, enhance flexibility and improve performance.”
This report by The Canadian Press was first published July 27, 2021.
Companies in this story: (TSX:TECK.B)
The Canadian Press