VANCOUVER (miningweekly.com) – Canada’s largest diversified miner Teck Resources is positioned to benefit from rising commodity prices owing to its exposure to stronger steelmaking coal and zinc markets, as well as from the weaker Canadian dollar.
VP of investor relations and strategic analysis Greg Waller told the Deutsche Bank twenty-fourth Annual Leveraged Finance Conference, in Phoenix, Arizona, on Tuesday that the improved direction in key commodity markets held significant upside for Teck’s core profit, as measured by earnings before interest, taxes, depreciation and amortisation (Ebitda).
Every C$0.01 change in the exchange rate with the US greenback will result in a C$35-million adjustment in Teck’s Ebitda, while every $1/t change in the price of coking coal will impact Ebitda by C$31-million. Further, every $0.01/lb change in the price of copper and zinc will impact Ebitda by C$8-million and C$13-million, respectively.