Teck Falls After Earnings Miss as Costs Rise at Chilean Project
(Bloomberg) -- Teck Resources Ltd., Canada’s largest diversified miner, fell after adjusted earnings missed estimates amid rising costs at a key construction project in Chile.
Teck dropped 5.3% to C$16.67 as of 10:21 a.m. in Toronto after earlier sinking to its lowest in six weeks.
The Vancouver-based company said Tuesday that adjusted earnings before interest, taxes, depreciation and amortization in the third quarter fell to C$638 million ($484 million), missing the average analyst estimate of C$646 million.
Teck said it was safely ramping back up to full construction at its Quebrada Blanca copper mine expansion project, known as QB2, following delays due to Covid-19 restrictions. But the estimated impact from the suspension would be $350 million to $400 million, not including an additional $45 million to construct more camp space, the miner said in its earnings statement. That raised potential costs by as much as $115 million.
The company, which produces metallurgical coal, copper, zinc and energy, also raised its guidance for second-half metcoal unit costs to a range of C$101 to C$108 per ton from its earlier guidance of C$99 to C$106.
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