February 17, 2009 / 4:12 PM / 9 years ago

Teck shares drop on writedowns, revenue revisions

TORONTO, Feb 17 (Reuters) - Teck Cominco TCKb.TO shares plunged 9 percent on Tuesday after the mining company reported a steep fourth-quarter loss on the back of more than C$1 billion ($800 million) in charges due to writedowns and revenue revisions.

Teck, which has been struggling to pay down debt from last year’s acquisition of Fording Canadian Coal Trust, lost a net C$607 million ($488 million), or C$1.28 a share, in the three months ended Dec. 31, the company reported late on Monday.

A sharp year-over-year drop in base metal prices prompted Teck to write down the carrying value of several assets by a total of C$844 million.

It also took a C$270 million hit to revise lower the selling price of metal that was initially sold in the third quarter but at prices locked in in the fourth quarter when they were much lower.

By mid-morning on Tuesday, Teck’s shares were down 45 Canadian cents at C$4.47 on the Toronto Stock Exchange, sitting at a two-month low.

$1=$1.26 Canadian Reporting by Cameron French; editing by Rob Wilson

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