Canadian coal miner, Teck Resources, has reported significantly lower profits in Q2 of this year compared to the same period last year, becoming the latest company to report a drop in earnings on the back of lower coal prices. Gross profits totaled US$633 million, compared to US$871 million in Q2 2013.
“Coal prices in US dollar terms were lower by 29% in the second quarter of 2014 compared with a year ago and 15% lower than in the first quarter of 2014,” the company said in its earnings report. Gross profit in the coal business unit dropped to US$23 million from US$277 million last year.
While profits fell, Teck did record and increase in coal production of 7% on the previous year. Total production stood at 6.4 million t on the back of higher capacity utilisation and record production at the company’s Elkview and Greenhills mine.
The company now expects coal production to be 6 million t in Q3 with full year output forecast at 26 – 27 million t.
Read the article online at: https://www.worldcoal.com/coal/25072014/world-coal-teck-announces-fall-in-profits-in-q2-2014-coal/