February 21, 2020 / 4:05 PM / in 4 months

BUZZ-Teck Resources: Falls to over 3-1/2 yr low as outlook, Q4 results disappoint

(Updates)

** Shares of the Canadian miner Teck Resources fall as much as 13.5% to touch over 3-1/2 year low of C$14.79

** Q4 adj EPS of C$0.22 misses est of C$0.39 (Refinitiv data), hit by lower prices and sales volumes for steelmaking coal

** Teck’s Q4 adj profit plunges ~76%, while output from its steelmaking coal operations falls 8.2% and avg realised price for commodity slumps ~31%

** Cuts Q1 steelmaking coal sales range to 4.8 mln-5.2 mln tonnes from prev est of 5.1 mln-5.4 mln tonnes

** Company also warns of a C$1.13 bln writedown of its proposed Frontier oil sands mine should Prime Minister Justin Trudeau’s govt rejects the project

** Takes after-tax impairment charge of C$910 mln on its stake in Fort Hills project in Alberta on lowered expectations of future oil prices

** CEO Don Lindsay says ongoing global economic uncertainty impacted Q4 commodity prices and that has continued into 2020, exacerbated by the coronavirus outbreak, severe weather conditions in British Columbia and rail line blockades

** Teck issued weaker than anticipated Q4/19 results and disappointing 2020 coal guidance, particularly given ongoing cost reduction initiatives - Scotiabank

** Stock fell 23.4% in 2019 (Reporting by Shanti S Nair in Bengaluru)

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