Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Teck Resources (TSX:TECK.A | TECK.B)(NYSE:TCK), Canada’s largest diversified miner, posted Wednesday quarterly profits below estimates, due mainly to weak prices for heavy crude and base metals.
The Vancouver-based miner, the world’s second-biggest exporter of steel-making coal, recorded negative pricing adjustments, charges related to a write-down in inventory and an operating loss at its Fort Hills oil sands mine during the last three months of 2018.
The company had warned that its fourth-quarter profit may be lower than expected because of disappointing business at its energy unit and also as its Trail Operations, which produce refined zinc and lead, faced ongoing supply interruptions from third-party providers.
Revenue, however, increased by 2.9% to C$3.25 billion (about $2.46 billion ) in the quarter, up from a $3.16 billion in the 2017 fourth quarter, as lower base metal prices were offset by higher prices for steelmaking coal and new contributions from oil sands production.
