Teck doubles adjusted profit in Q1

Vancouver – Teck Resources (TCK.B-T, TCK-N) has more than doubled first quarterly adjusted earnings compared with last year on strong copper and coal prices.

The company has reported adjusted profit of $450 million or 78¢ per share, compared with $198 million or 34¢ for the same period in 2010. Unadjusted profit was $461 million, compared with $896 million for the same quarter last year.

While adjusted earnings increased, coal sales were actually down 1.3 million tonnes compared with the same quarter the year before, as harsh winter weather interrupted shipments. The company had to deal with derailments, heavy snow, avalanches and port issues.

The company also lost roughly a million tonnes of coal production from a strike at its Elkview mine in British Columbia, though a new five-year labour agreement has been in place and production back on since April 8.

The earnings gains came from a significantly increased coal price, from US$140 per tonne in the first quarter 2010 to US$207 per tonne in the latest quarter. Coal prices continue to look strong for the company, with it forecasting second quarter prices at a weighted average of between US$280 to US$290 per tonne and a top price above US$330 per tonne.

Teck also recently announced it has started a feasibility study on its recently commissioned Carmen de Andacollo copper concentrator with the aim of increasing copper concentrate production by 20,000 tonnes to 120,000 tonnes. The study is expected in the fourth quarter and will include further drilling and permitting analysis.

Along with Carmen, the company this year expects feasibility studies on its Quintette coal mine, Quebrada Blanca copper concentrator and pre-feasibility studies on its Galore Creek copper mine, Relincho copper mine and its oil sands mine projects.

The company followed its earnings announcement by declaring a 30¢ per share dividend.

Teck’s share price was up $2.85 or 5.8% to $51.62 on 4.3 million shares traded after declaring the dividend.