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Teck Falls After Earnings Miss as Costs Rise at Chilean Project

Teck Falls After Earnings Miss as Costs Rise at Chilean Project

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.

©2020 Bloomberg L.P.