Teck Cominco sees record profits in 2004

Vancouver – Continuing its performance streak, Teck Cominco (TEK-T) achieved yet another net earnings record in the fourth quarter as well as for 2004.

Net earnings came in at $285 million or $1.42 per share, for the fourth quarter of 2004, compared to $104 million or $0.56 per share in the comparative quarter of 2003. Annual net earnings for 2004 were $617 million or $3.18 per share, up significantly over 2003’s $134 million or $0.71 per share.

Strong commodity prices were the primary driver behind the company’s performance milestones, principally base metals and coal. However, the buoyant prices received for the company’s metals and coal output were partially offset by a weakened U.S. dollar.

The company reported its strongest ever balance sheet as of 2004 year-end, with $907 million in cash versus debt of $665 million.

Operating profit in 2004 was $1.1 billion, a sizeable jump over the $314 million from the prior year. On top of the increases in commodity prices, mine production and sales volumes, the acquisition of an additional 34% in Highland Valley Copper as well consolidation of results from Antamina contributed to the results.

Teck Cominco realized significant price increases in essentially every commodity it produces. In 2004, the company’s copper sales averaged US$1.35 per pound, up 59% from the US$0.85 in 2003, lead averaged US$0.40 per pound, up 54% from US$0.26, the zinc price averaged US$0.48 per pound, up 26% from US$0.38, and molybdenum averaged US$19 a pound, a 280% increase over the US$5.00 realized in 2003. Gold sales averaged US$406 and ounce in 2004, up 13% from the US$359 seen in 2003. Coal sales last year saw an average price of US$52 per tonne, an increase of 16% over the US$45 realized in the prior year.

Teck Cominco is one of the world’s larger producers of zinc and metallurgical-grade coal, and also produces significant amounts of copper and gold from thirteen mines in Canada, Peru and the United States.