OREANDA-NEWS. August 12, 2014. Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) (“Teck”) reported second quarter adjusted profit attributable to shareholders of USD72 million, or USD 0.13 per share, compared with USD 197 million or USD 0.34 per share in 2013.

Profit attributable to shareholders was USD 80 million, or USD 0.14 per share, compared with USD 143 million, or USD 0.25 per share, a year ago.

“We are pleased with the performance of our operations this quarter and with our efforts to reduce our costs and capital spending to ensure we emerge stronger from the current challenging price environment, particularly the substantially lower steelmaking coal price that was prevalent in the second quarter of 2014 compared with last year,” said Don Lindsay, President and CEO.

Highlights and Significant Items

Profit attributable to shareholders was USD 80 million and EBITDA was USD 558 million in the second quarter.

Gross profit before depreciation and amortization was USD 633 million in the second quarter compared with USD 871 million in the second quarter of 2013.

Cash flow from operations, before working capital changes, was USD 520 million in the second quarter of 2014 compared with USD 584 million a year ago.

Our cash balance was USD 2.1 billion at June 30, 2014. We also extended the term of our committed revolving credit facility to July 2019, increasing the amount available by USD 1 billion to USD 3 billion and providing a total of Cdn5.3 billion of liquidity.

Our cost reduction program has exceeded our initial goals, with USD 150 million of annualized reductions realized to date. We are targeting a further USD 50 million of annualized cost reductions. We are also on target to achieve USD 150 million of capital expenditure reductions.

We have reached agreements with our quarterly contract customers to sell 5.5 million tonnes of coal in the third quarter of 2014 based on USD 120 per tonne for the highest quality product and we expect total sales in the third quarter, including spot sales, to be at or above 6.0 million tonnes.

Throughput increased at 10 of our 13 operations in the second quarter compared with a year ago.
Construction of Trail’s new acid plant was completed in May and by June the plant was operating at design rates.

The Pend Oreille zinc mine is being prepared for a restart with first ore expected by December 2014.

We have now completed the mill optimization project at Highland Valley Copper with daily throughput averaging 140,000 tonnes in the second quarter, 10,000 tonnes per day above design capacity.

The Red Dog 2014 shipping season commenced on June 29, 2014 with planned shipments of approximately 1.0 million tonnes of zinc concentrate and 184,000 tonnes of lead concentrate.

We paid a USD 0.45 per share dividend on our Class A common shares and Class B subordinate voting shares on July 2, 2014.