TORONTO (Reuters) – Diversified miner Teck Resources Ltd, the world’s second-biggest exporter of steel-making coal, reported lower-than-expected third-quarter earnings on Thursday, hit by declining commodity prices and higher costs.
A number of one-time events also weighed on the quarter, including delayed zinc sales and higher costs at the Trail smelter due to forest fire smoke, adding up to C$58 million ($44.39 million), TD Securities analyst Greg Barnes said in a note.
Strong steel-making coal sales in the quarter would have “significantly” exceeded Teck’s forecast of 6.8 million tonnes, the company said, but logistics issues at Westshore Terminals delayed delivery of approximately 250,000 tonnes of the material, worth some C$55 million in revenue.
The Vancouver-based company now expects 2018 steel-making coal output in the low end of a range between 26 million and 27 million tonnes, while full-year costs are seen at C$60-C$63 a ton, up from C$56-C$60 previously.
Teck shares fell as much as 6 percent after the results were announced before edging up to C$25.99, a 3.4 percent decline. That was partly offset by improved guidance for Teck’s copper and zinc units, said Clarkson Platou analyst Jeremy Sussman in a note.