Coal news and updates

Teck Resources profit falls; cuts coal output forecast

Canadian miner Teck Resources Ltd. reported a 21 per cent fall in quarterly profit and cut its 2015 coal production forecast due to falling demand from China and increased supply from Australia.

The company, the largest producer of steel-making coal in North America, cut its 2015 coal production forecast to 25-26 million tonnes from 26.5-27.5 million tonnes.

Teck also cut its third-quarter sales forecast to 6 million tonnes from 6-6.5 million tonnes.

The company said it would reduce production further in the fourth quarter, if market conditions do not improve.

Average realized prices for coal fell 14 per cent to $95 per tonne in the second quarter ended June 30, while average realized prices for copper fell 11 per cent to $2.74 per pound.

Net profit attributable to shareholders fell to $63-million, or 11 cents per share, for the quarter, from $80-million, or 14 cents per share, a year earlier.

On an adjusted basis, Teck earned 14 cents per share, above analysts’ average estimate of 11 cents, according to Thomson Reuters I/B/E/S.

The Vancouver-based miner reported revenue of about $2-billion, in line with the average analyst estimate.

Up to Wednesday’s close of $10.41, the company’s Toronto-listed shares had fallen 34 per cent this year, while its U.S.-listed shares dropped 42 per cent.

source: http://www.theglobeandmail.com