Teck Reduces Fourth Quarter Sales Forecast, Says Copper Shipments Also Under Threat
Diversified miner Teck Resources cut its fourth-quarter coking sales forecast to 1.2 million tonnes and warned sales of 4,500 tonnes of copper in concentrates could also be delayed in the first quarter. quarter, due to the effects of inclement weather. in British Columbia.
Teck lowered its forecast for fourth-quarter steel coal sales to 5.2 million tonnes and 5.7 million tonnes, from 6.4 million tonnes to 6.8 million tonnes previously.
The current rain-related train disruptions not only reduced fourth-quarter sales but also increased costs, the company said in an update on Monday. The miner had to divert shipments to the Ridley Terminals in Prince Rupert.
The adjusted 2021 site cash cost of sales would increase to between $ 64 / t and $ 66 / t, slightly above the high end of the previously guided $ 59 / t at $ 64 / t.
Due to ongoing rail disruptions and associated demurrage charges in the fourth quarter, in addition to the impacts of previously disclosed wildfires and inflationary pressures, Teck said he expected transportation costs for the year. 2021 from $ 44 / t to $ 46 / t, compared to previous forecasts. of $ 42 / t for the year.
The miner noted, however, that the increase in costs was offset by persistently high prices for iron and steel coal until the second half of 2021. The average price of steel coal for the three months ended in November stood at $ 371. / t, or $ 168 / t more on a free market. pension basis above the three-month average at the end of August and $ 254 / t above the three-month average at the end of May. Transportation costs were only $ 3 / t higher.
“CN and CP report positive progress in restoring service capacity and continue to increase Teck shipments to terminals in the Lower Mainland. We anticipate that when rail service is fully restored, we will be able to significantly recover delayed fourth quarter sales in the first half of 2022, â€the mining company said.
Coking coal production volumes for the year continue to be estimated at between 24.5 million and 25 million tonnes, in line with forecasts provided after the July 2021 wildfires.
Meanwhile, Teck said while there was no impact on production at Highland Valley Copper, up to 4,500 t of copper contained in concentrate sales was also at risk of being delayed in the first quarter. 2022 due to supply chain disruptions.