View of Teck Trail from Jubilee Park. Photo: Trail Times

View of Teck Trail from Jubilee Park. Photo: Trail Times

Teck Trail reports $7M third quarter loss

Overall number an improvement from a reported $20-million loss for the third quarter of 2019

Teck has reported a $7-million loss in the third quarter at its Trail operation.

The smelter would have posted a gross profit of $14-million over the three months of July, August and September if not for depreciation and amortization.

The overall number, however, is still an improvement from a reported $20-million loss for the third quarter of 2019.

Read more: What’s the deal with the dam?

Read more: Slowing market has Teck closing Pend Oreille mine

The company’s financial report, released Oct. 26, shows production of refined zinc in Trail increased six per cent to 76,400 tonnes from one year ago, though 2019 production was impacted by equipment failure in the zinc refinery.

Refined lead production of 18,200 tonnes in the third quarter at Teck Trail was 1,100 tonnes higher than the same period last year.

Silver production decreased to 2.6 million ounces compared with 3.5 million ounces a year ago primarily as a result of lower silver contained in concentrate feeds.

At Red Dog Operations, zinc and lead production in the third quarter decreased by 14 per cent and nine per cent respectively, compared to a year ago.

The company says the lower production was primarily due to lower ore grades as expected in the mine plan as well as reduced mill throughput.

Property, plant and equipment expenditures include $61 million for sustaining capital, of which $5 million relates to Trail Operations and $56 million relates to Red Dog.

Operating costs before changes in inventory in the third quarter were three per cent lower than a year ago at $118 million, primarily due to lower supplies and maintenance costs.

The report shows gross profit from Teck’s overall zinc business unit was $184 million in the third quarter compared with $207 million a year ago.

The company says uncertainty remains over the extent and duration of impacts that COVID-19 may have on demand and prices for Teck commodities, as well as on its suppliers, customers and employees and on global financial markets.

Read more: Why is Teck Trail essential during a pandemic?

Read more: COVID-19 case confirmed at Teck Trail

Reported impacts on Teck’s business include: global workforce and contractors continue to work safely and productively with challenges associated with the COVID-19 pandemic to minimize the spread of the virus; protocols remain in place with a continued focus on preventative measures, controls and compliance, and the integration into “new normal” of operations and planning; all mines have recovered from COVID-19 production disruptions in the second quarter, though labour intensive activities such as maintenance, mine operations, and projects continue to be impacted by COVID-19 safety protocols; $130 million in costs was expensed in the quarter relating to the temporary suspension and remobilization of the QB2 project after suspension due to COVID-19 in March 2020.

(QB2 refers to Quebrada Blanca Phase 2, a copper project in the northern region of Chile).

“We made significant progress during the quarter on our priority projects, including safely ramping back up construction at our QB2 project (Chile) and advancing the Neptune Bulk Terminals upgrade in line with schedule and budget. Our financial performance recovered strongly from a second quarter that was significantly negatively impacted by COVID-19, and despite the decline in realized steelmaking coal prices, we posted gains in profitability and operating cash flows,” Don Lindsay, President and CEO said in the report.

“Across our business, our people have adapted to the new normal of operating through the pandemic, staying focused on health and safety while continuing to responsibly produce materials essential to the global economic recovery,” said head of Teck, Don Lindsay.

In the third quarter, Teck’s profit attributable to shareholders was $61 million, or $0.11 per share, compared with $369 million, or $0.66 per share, in the same period a year ago.



newsroom@trailtimes.ca

Like us on Facebook and follow us on Twitter

BusinessCity of Trailtech industry

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Castelgar City Councilors Dan Rye and Sue Heaton-Sherstibitoff at Winterfest 2019. Photo: Betsy Kline
Join the Castlegar Making Spirits Bright challenge

Go all out with your Christmas decorating and send us a photo to enter

Glacier Gymnastics head coach Sandra Long says she doesn’t understand why her sport is currently shut down while others are allowed to operate. Photo: Tyler Harper
‘It is bewildering’: Nelson sports leaders call out provincial shut down

Indoor group classes for activities such as gymnastics and dance are on hold

Slocan Valley communities struggling with the need for high-speed internet should consider Kaslo’s model, according to the Kaslo infoNet Society. Photo: Black Press
Follow Kaslo’s lead for fibre service, says proponent

Tim Ryan of Kaslo infoNet Society says bringing high-speed internet to rural homes is possible

A man wearing a face mask to prevent the spread of COVID-19 walks past a mural in Vancouver on Monday, Nov. 30, 2020. THE CANADIAN PRESS/Marissa Tiel
212 new COVID-19 cases in Interior Health over the weekend

A total of 490 cases remain active; 15 in hospital

Seven Deers carved Shinning Raven Woman out of Labradorite harvested from the Canadian Shield. Photo: Laurie Tritschler
Sculpture by Indigenous artist to be erected in Grand Forks

Civic leaders have rallied behind the project by Grand Forks’ David Seven Deers

THE CANADIAN PRESS/Nathan Denette
B.C. researchers launch study to test kids, young adults for COVID-19 antibodies

Kids and youth can often be asymptomatic carriers of the novel coronavirus

Paramedics register patients at a drive through, pop-up COVID-19 test centre outside the Canadian Tire Centre, home of the NHL’s Ottawa Senators, in Ottawa, Sunday, Sept. 20, 2020. A new poll suggests most Canadians aren’t currently worried that people in other countries might get a COVID-19 vaccine first. THE CANADIAN PRESS/Justin Tang
Canadians not worried other countries will get COVID-19 vaccine first: poll

Forty-one per cent of respondents say they want the vaccine to be mandatory for all Canadians

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Fossil finds at Mt. Stephen. (Photo: Sarah Fuller/Parks Canada)
Extreme hiking, time travel and science converge in the Burgess Shale

Climb high in the alpine and trace your family tree back millions of years – to our ocean ancestors

Kettle bells sit aligned in an indoor fitness studio. (PIxabay.com)
1 COVID-19 case at a B.C. fitness studio leads to 104 more infections, 6 school exposures

According to case data released by Fraser Health, one case of the novel coronavirus carries a big impact

Vehicles drive past a display thanking essential workers in Burnaby, B.C. on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Marissa Tiel
B.C. changing COVID-19 case reporting as virus spread continues

Manual counting takes more time, leads to errors

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Mask fundraiser helps make children’s wishes come true

From Black Press Media + BraveFace – adult, youth and kid masks support Make-A-Wish Foundation

Christy Jordan-Fenton is the co-author of the book Fatty Legs, which has been mentioned amid the controversy of an Abbotsford school assignment on residential schools.
Co-author of residential schools book condemns controversial Abbotsford class assignment

Children’s book mentioned amid controversy at W. A. Fraser Middle School

Most Read