Canadian mining firm Teck Resources has announced that notwithstanding a decline in production and sales volumes, in January-March 2022 quarter the first quarter of the current year the company achieved an increase in gross profit from its steelmaking coking coal business unit to a record CAD 1.78 billion, compared to a gross profit of CAD 196 million in the same period last year. That was driven by record high steelmaking coal prices, but was partly offset by higher unit operating costs and logistics issues which curtailed sales volumes in the quarter.Specifically, in the January-March period, the company produced 5.6 million tonnes of coking coal, down 300,000 tonnes year on year. The decline was attributed chiefly to processing challenges and curtailments early in the quarter associated with high mine inventories from weather disruptions in late 2021. Nevertheless, the lower first quarter production is not expected to impact annual sales volumes as by the middle of the year the company is targeting to reduce high clean coal inventories, and is expecting higher production rates in the second half of the year.
Canadian mining firm Teck Resources has announced that notwithstanding a decline in production and sales volumes, in January-March 2022 quarter the first quarter of the current year the company achieved an increase in gross profit from its steelmaking coking coal business unit to a record CAD 1.78 billion, compared to a gross profit of CAD 196 million in the same period last year. That was driven by record high steelmaking coal prices, but was partly offset by higher unit operating costs and logistics issues which curtailed sales volumes in the quarter.Specifically, in the January-March period, the company produced 5.6 million tonnes of coking coal, down 300,000 tonnes year on year. The decline was attributed chiefly to processing challenges and curtailments early in the quarter associated with high mine inventories from weather disruptions in late 2021. Nevertheless, the lower first quarter production is not expected to impact annual sales volumes as by the middle of the year the company is targeting to reduce high clean coal inventories, and is expecting higher production rates in the second half of the year.
