Teck Resources’ Natal West pit in B.C.’s Elk Valley. (James Snell/The Free Press)

Teck Resources’ Natal West pit in B.C.’s Elk Valley. (James Snell/The Free Press)

Teck Resources reports Q3 profit down, plans to cut 500 full-time jobs

Miner’s third-quarter profit attributable to shareholders drops from $1.28 billion to $369 million

Teck Resources Ltd. says it will cut 500 full-time equivalent jobs as it focuses on trimming $500 million from planned spending through to the end of 2020.

The Vancouver-based miner said Thursday it wants to improve efficiency and productivity after reporting its third-quarter profit attributable to shareholders fell to $369 million, down from earnings of $1.28 billion in the same quarter last year.

“While our financial position remains strong, we have implemented a company-wide cost reduction program with reduced spending,” said Teck CEO Don Lindsay on a conference call.

The company said in a regulatory filing earlier this year it had about 10,000 full-time “regular” employees as of the end of 2018, with about 4,400 in coal operations, 2,500 in copper and 2,200 in its zinc mining sector.

The job cuts will be made through attrition, the expiry of temporary contract positions and current job vacancies, chief financial officer Ron Millos said on the call.

He said the spending reduction target for the balance of 2019 is $170 million, with $120 million in capital reductions and deferrals.

For 2020, the company plans to trim a further $330 million in spending, including $130 million from its capital plans.

“Over the past few years, we have been focused on maximizing production to capture margins during periods of higher commodity prices,” Lindsay said on the call.

“However, current global economic uncertainties are having a significant negative effect on the prices of our products, particularly steelmaking coal.”

Lindsay said Teck’s operations in Chile have not been affected so far by protests sparked by public transportation price hikes which have resulted in several deaths.

He said about 5,000 people are working on construction of its Quebrada Blanca Phase 2 mining project there and funding will continue because it is a key component of future growth.

The company’s Neptune Bulk Terminals expansion in Vancouver is also a “priority project” that will continue to attract funding, he added.

In a report, analyst Walter Spracklin of RC Dominion Securities said Neptune is an “ill-advised project, with questionable returns,” pointing out its price tag has increased to more than $750 million from the original cost of $470 million and questioning whether the company can complete it as envisioned.

READ MORE: Teck Resources streamlining water treatment

Teck shares fell by as much as six per cent to $20.70 on the Toronto Stock Exchange.

It reported its revenue was nearly $3.04 billion for the three months ended Sept. 30, down from nearly $3.21 billion in the year-earlier period.

On an adjusted basis, the company says it earned a profit attributable to shareholders of $403 million or 72 cents per share compared with an adjusted profit of $466 million or 81 cents per share a year ago.

Analysts on average had expected a profit of 66 cents per share for the quarter, according to financial markets data firm Refinitiv.

Dan Healing, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

1914
It happened this week in 1914

June 6 -12: Compiled by Dave Humphrey from the archived newspapers held at the Cranbrook History Centre and Archives

Provincial Health Officer Dr. Bonnie Henry on Thursday, June 10, mentioned Grand Forks among two other COVID “hot spots” in B.C. Photo: Screenshot - YouTube COVID-19 BC Update, June 10, 2021
PHO Henry says West Kootenay city is a COVID ‘hot spot’ in B.C.

There are 11 cases of COVID-19 in the Grand Forks local health area, according the BC CDC

Supporters — and shoppers — lined up waiting at the Cranbrook Health Care Auxiliary Thrift Store on 8th Avenue South, waiting for the doors to open on the store's first day of operations since the pandemic forced its closure. (Photo courtesy Kate Fox)
CHCA Thrift Store re-opens in Cranbrook

After a closure of 15 months, due to the pandemic, the Cranbrook Health Care Auxiliary Thrift Store on 8th Avenue South has once again opened its doors for business.

t
How to tell if a call from ‘CRA’ is legitimate or a scam

Expert says it’s important to verify you really are dealing with the CRA before you give out any info

British Columbia-Yukon Community News Association’s 2021 Ma Murray Awards were handed out during a virtual ceremony on Friday, June 10. (Screen grab)
Black Press Media winners take gold at B.C. and Yukon journalism awards

Publications received nods in dozens of categories

Prime Minister Justin Trudeau greets campers while visiting McDougall, Ont. on Thursday, July 19, 2018. THE CANADIAN PRESS/Frank Gunn
71% of B.C. men say they’d prefer to go camping with Trudeau: survey

Most British Columbians with plans to go camping outdoors say they’d prefer to go with Trudeau or Shania Twain

Members of the Department of Fisheries and Oceans’ Marine Mammal Response Program rescued an adult humpback what that was entangled in commercial fishing gear in the waters off of Entrance Island on Thursday, June 10. (Photo courtesy Marine Mammal Response Program)
Rescuers free humpback ‘anchored’ down by prawn traps off Vancouver Island

Department of Fisheries and Oceans responders spend hours untangling whale

Chilliwack cocaine trafficker Clayton Eheler seen with a tiger somewhere in Asia in 2014. Eheler was sentenced to nine years jail in 2018, but was released on bail in October 2020 pending his appeal of conviction.(Facebook)
Director of civil forfeiture seeks $140,000 from Fraser Valley drug dealer’s father-in-law

Clayton Eheler’s father-in-law Ray Morrissey caught with money in Fort St. John by B.C.’s gang unit

A Comox Valley shellfish operator pleaded guilty and was fined $10,000 in provincial court in Courtenay earlier this year. Record file photo
B.C. clam harvester fined $10,000 for Fisheries Act violations

Charges against three others were stayed in Courtenay Provincial Court

Frank Phillips receives a visit from his wife Rena at Nanaimo Seniors Village on their 61st wedding anniversary, March 31, 2020. Social visits have been allowed since COVID-19 vaccination has been offered in all care homes. (Nanaimo News Bulletin)
B.C. prepares mandatory vaccination for senior care homes

180 more cases of COVID-19 in B.C. Friday, one more death

Lorraine Gibson, 90, received a COVID-19 immunization at the South Surrey Park and Ride vaccination clinic. (File photo: Aaron Hinks)
Surrey has had 25% of B.C.’s total COVID-19 cases

Surrey recorded 4,012 cases in May

The arrest south of Winnipeg occurred before Bernier was to arrive at a protest in the city. (Twitter/Maxime Bernier)
Maxime Bernier arrested following anti-rules rallies in Manitoba: RCMP

He’s been charged with exceeding public gathering limits and violating Manitoba’s requirement to self-isolate

Most Read