Canadian miner Teck posts surprise profit as costs fall
(Reuters) - Canadian miner Teck Resources Ltd TCKb.TO TCK.N reported a surprise quarterly profit as its costs declined.
Teck, the largest producer of steelmaking coal in North America, said on Thursday its operating costs fell 15 percent to C$691 million ($525 million) in the second quarter.
A global commodity rout had pushed coal and copper prices to multi-year lows, forcing miners to sell assets, lay off workers, and cut dividends and capital spending to preserve cash and reduce debt.
Teck also raised its 2016 production forecast for coal to 26 million-27 million tons from 25 million-26 million, and for copper to 310,000-320,000 tons from 305,000-320,000.
"While the commodity cycle continues to be challenging, we are starting to see some positive changes in the direction of zinc and steelmaking coal prices," Chief Executive Don Lindsay said.
Teck forecast coal sales of at least 6.8 million tons for the third quarter. The miner reported second-quarter coal sales of 6.3 million tons, below its forecast of 6.5 million.
The Vancouver-based company cut its 2016 cost of sales forecast to $42-$46 per ton from $45-$49, citing a fall in expenses and lower diesel prices.
OIL PROJECT Continued...