Teck Resources (TSX: TCK.B; NYSE: TCK) posted decent second quarter results, but analysts remain cautious about the diversified miner’s path forward, amid weakening coal markets.
The senior producer of metallurgical coal, copper and zinc reported a profit of $63 million on revenue of $2 billion. While revenue was flat year-over-year, earnings dropped 21%. However, adjusted earnings were $79 million, or 14¢ per share, up from $72 million, or 13¢ per share, a year ago. Analysts on averaged had expected adjusted earnings of 11¢ per share.
The beat came on the back of higher production and declining costs, mainly in its coal and copper divisions, coupled with lower energy prices and a weaker Canadian dollar.
“Production was up for all of our major products,” Teck CEO Don Lindsay said on a conference call. “We also reduced unit cost in both copper and coal by 9% and 10%, respectively.”
Read the complete article at NortherMiner.com/news/teck-chugs-along