Canadian miner Teck's coal sales quantities up, average costs down
Author : Pearce Donovan | Published On : 23 Mar 2021Canadian coking coal producer Teck Resources asserted a record 7.6 million mt of coal sales in the third quarter, up 36% from a year ago, the company stated Thursday.
But Don Lindsay, head of state and CEO of the Vancouver, British Columbia-based miner, said throughout the incomes teleconference that "the present cost for steelmaking coal continues to be listed below what our company believe is needed to sustain sufficient production in the sector in the long-term."
He added that Teck, to date, has actually reached agreements with coal consumers to sell 5.6 million mt in Q4 at a typical price of $145/mt, as well as the firm anticipates complete Q4 sales, including spot sales, to be at or over 6.3 million mt. Teck's ordinary cost compares with the present standard for premium coking coal of $152/mt.
In Q3, Teck sold 7.6 million mt at a typical understood rate of $139/mt, compared to 5.5 million mt at an ordinary recognized price of $193/mt a year ago. That likewise compares with 6.3 million mt marketed in Q2 at $156/mt.
HEDP , Platts assessed premium low-vol coking coal at $145.50/ mt FOB Australia, up 50 cents, as well as low-vol tough coking coal FOB US East Shore at $134.50/ mt, the same.
Firm execs told analysts that, while the rates environment stays at unsustainable levels, the worldwide financial situation is maintaining, with manufacturing and steelmaking getting in Eastern countries like China.
At the same time, Teck executives stated they are concentrated on containing costs. During Q3, website prices plus transport prices tallied in at C$ 88/mt ($84.41/ mt), compared with C$ 89/mt in Q2 and C$ 95/mt in Q3 2012.
"We continue to execute our cost-reduction program and to date our existing procedures have actually identified over $330 countless yearly recurring potential expense financial savings at continuous production levels and also have actually executed $300 countless these initiatives," Lindsay stated.
Teck additionally is delaying advancement of specific projects, like the Quintette surface area mine near Tumbler Ridge, British Columbia, and has actually deferred capital expense.
"At Quintette, we delayed the final stage of growth for the mine and also will not start the development till we see a continual enhancement popular for steelmaking coal," Teck stated in its revenues declaration.
Teck will certainly examine whether the mine should be brought right into manufacturing in the springtime of 2014 and is proceeding engineering job so production might potentially begin in mid-2015.
All told, Teck understood $1.1 billion in Q3 coal sales, level with the year-ago quarter, and also gross profit of $217 million, down from $421 million in the year-ago quarter.