Teck Resources Reports Quarterly Loss Amid Trail Operations Impairment
Teck Resources has reported a $748 million loss from continuing operations attributable to shareholders in the third quarter, primarily due to a one-time asset impairment charge related to its Trail operations. The Vancouver-based mining company recorded a loss of $1.45 per diluted share, a significant increase compared to the loss of $48 million, or nine cents per share, reported for the same quarter last year.
Despite the net loss, Teck's revenue for the quarter rose to $2.86 billion, up from $1.99 billion in the corresponding period last year. However, the revenue increase was overshadowed by the substantial impairment charge, which had a major impact on overall profitability.
In its updated outlook, Teck revised its guidance for 2024 copper production to between 420,000 and 455,000 tonnes, down from its earlier projection of 435,000 to 500,000 tonnes. The company also lowered its production guidance for molybdenum and refined zinc and reduced its expectations for zinc net cash unit costs.
On an adjusted basis, Teck earned 60 cents per diluted share in the third quarter, a significant improvement compared to the adjusted profit of 16 cents per diluted share reported a year earlier. The adjusted earnings exceeded analysts' expectations, which had been for a profit of 37 cents per share, according to LSEG Data & Analytics.
Teck's performance comes as the company grapples with changing production forecasts and a challenging operating environment, particularly in relation to its Trail operations. The company is expected to provide further insights during its upcoming earnings call, as investors remain eager to understand the full impact of the asset impairment and the revised production outlook.
