Teck Resources Releases Preliminary Guidance for Steelmaking Coal Volumes and Costs
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Teck Resources Limited released its preliminary guidance for second quarter steelmaking coal volumes and costs, and an update to its guidance for the first quarter of 2017.
Steelmaking coal sales volumes for the second quarter of 2017 are expected to be at least 6.8 million tonnes, and site costs in the second quarter are expected to be in the range of $47 to $51 per tonne.
The first quarter average realized price is now expected to be between US$209 to US$212 per tonne, at the higher end of our previous guidance range. Sales volumes in March improved relative to weak sales in January and February, but not sufficiently to result in sales above 5.8 - 6 million tonnes in the quarter. Final quarterly sales will depend on timing of shipments. Mining activity largely continued at full production rates through the first quarter, but lower sales volumes, winter weather and transportation issues affected clean coal production. As a result, site unit costs will be above our annual guidance range in the first quarter, in the range of $54 to $57 per tonne.
With production and sales volumes expected to return to more normal levels in the second quarter, we reconfirm our previous annual production guidance of 27 to 28 million tonnes and annual site cost guidance of $46 to $50 per tonne.
The second quarter 2017 quarterly contract price for steelmaking coal has not yet been agreed, as the market awaits the outcome of the cyclone event in Australia, but assuming a return to normal market conditions we expect our average blended realized price for all of our steelmaking coal products in the second quarter to be in the usual range of approximately 95 percent of the quarterly contract price.
About Teck Resources
Headquartered in Vancouver, Canada, Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy.
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