Teck Resources Ltd. eked out an adjusted project of $16 million in the fourth quarter of 2015 despite plunging prices for its products.
The miner’s adjusted profit worked out to three cents a share. The very fact that Teck was in the black surprised many sell-side analysts – on average, they expected a loss of one cent.
Nonetheless, the results highlight the fact that Vancouver-based Teck is dealing with an incredibly challenging environment. Prices for copper, steelmaking coal and zinc have all nosedived amid concerns about growth in China, and Teck had to slash costs dramatically over the last few years to keep its business competitive.
Teck’s overall net loss in the quarter of $469 million as it recorded writedowns due to falling metal prices.
Chief executive Don Lindsay said he is pleased with the company’s performance. “However, the commodity cycle continues to provide us with a very challenging environment,” he said in a statement.
Unlike many competitors, Teck is fortunate to have a strong liquidity position, with $1.8 billion of cash and US$3 billion available in a revolving credit facility.
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