Third quarter profits more than doubled this year compared to 2016, according to Teck Resource’s Thursday news release.
Boosted by record zinc production and steelmaking coal, the mining giant reported earnings of $621 million compared to $152 million one year ago. The company attributes the adjusted profit margin to shareholders ($1.08 per share) in the third quarter compared $0.26 per share one year ago.
“We are very pleased with our performance in the third quarter,” said Don Lindsay, President and CEO.
Gross profit was $1.1 billion in the third quarter compared with $452 million a year ago.
Teck says its steelmaking coal business was helped by strong operational performance, substantially higher prices and increased sales volumes, partly offset by higher costs.
The company also reported benefits from higher copper, zinc and lead prices, partly offset by the strengthening loonie. Teck noted zinc prices reached a ten-year high in September at just under US $1.50 per pound.
Red Dog’s zinc production for 2017 is now expected to be in the range of 525,000 to 550,000 tonnes, up from the prior guidance range of 475,000 to 500,000 tonnes.