Teck Resources Hits 2021 Coal Production Guidance With 24.6 Million Tonnes
Teck Resources Limited (TSX: TECK.B) reported on Thursday night selected performance results for 2021. The company highlighted producing 24.6 million steelmaking coal tonnes for the year, hitting its production guidance of 24.5 – 25.0 million tonnes.
However, its Q4 2021 steelmaking coal sales of 5.1 million tonnes missed the lowered quarterly guidance of 5.2 – 5.7 million tonnes. This was lowered following the impact of the recent storm that affected its British Columbia operations.
Further, the cash cost of sales and transportation costs for the year came in at $65 and $44 per tonne, respectively. These figures met the previously announced guidances of $64 – $66 and $44 – $46 per tonne, respectively. However, in Q4 alone when weather-related operations setback occured, these figures went beyond the guidance as high as $72 and $49 per tonne.
The mining firm further relayed that the weather-related logistical challenges led to low clean steelmaking coal inventories at its operations but high inventories at its mine sites. Because of high inventory, it is projecting sales to exceed production by 1.2 – 1.5 million tonnes in 2022.
The FOB price also increased to US$445 per coal tonne by the end of the year. The firm posited that higher prices and increased inventories will lead to strong cash flow in H1 2022.
The company said it will release its full detailed Q4 and full-year 2021 results on February 24, 2022, along with its capital and operational guidances for the succeeding year.
Earlier this month, the firm reported receiving a strike notice from the workers at its Highland Valley copper mine in British Columbia.
Teck Resources last traded at $40.68 on the TSX.
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