Teck Resources’ Natal West pit in B.C.’s Elk Valley. (James Snell/The Free Press)

Teck Resources reports Q3 profit down, plans to cut 500 full-time jobs

Miner’s third-quarter profit attributable to shareholders drops from $1.28 billion to $369 million

Teck Resources Ltd. says it will cut 500 full-time equivalent jobs as it focuses on trimming $500 million from planned spending through to the end of 2020.

The Vancouver-based miner said Thursday it wants to improve efficiency and productivity after reporting its third-quarter profit attributable to shareholders fell to $369 million, down from earnings of $1.28 billion in the same quarter last year.

“While our financial position remains strong, we have implemented a company-wide cost reduction program with reduced spending,” said Teck CEO Don Lindsay on a conference call.

The company said in a regulatory filing earlier this year it had about 10,000 full-time “regular” employees as of the end of 2018, with about 4,400 in coal operations, 2,500 in copper and 2,200 in its zinc mining sector.

The job cuts will be made through attrition, the expiry of temporary contract positions and current job vacancies, chief financial officer Ron Millos said on the call.

He said the spending reduction target for the balance of 2019 is $170 million, with $120 million in capital reductions and deferrals.

For 2020, the company plans to trim a further $330 million in spending, including $130 million from its capital plans.

“Over the past few years, we have been focused on maximizing production to capture margins during periods of higher commodity prices,” Lindsay said on the call.

“However, current global economic uncertainties are having a significant negative effect on the prices of our products, particularly steelmaking coal.”

Lindsay said Teck’s operations in Chile have not been affected so far by protests sparked by public transportation price hikes which have resulted in several deaths.

He said about 5,000 people are working on construction of its Quebrada Blanca Phase 2 mining project there and funding will continue because it is a key component of future growth.

The company’s Neptune Bulk Terminals expansion in Vancouver is also a “priority project” that will continue to attract funding, he added.

In a report, analyst Walter Spracklin of RC Dominion Securities said Neptune is an “ill-advised project, with questionable returns,” pointing out its price tag has increased to more than $750 million from the original cost of $470 million and questioning whether the company can complete it as envisioned.

READ MORE: Teck Resources streamlining water treatment

Teck shares fell by as much as six per cent to $20.70 on the Toronto Stock Exchange.

It reported its revenue was nearly $3.04 billion for the three months ended Sept. 30, down from nearly $3.21 billion in the year-earlier period.

On an adjusted basis, the company says it earned a profit attributable to shareholders of $403 million or 72 cents per share compared with an adjusted profit of $466 million or 81 cents per share a year ago.

Analysts on average had expected a profit of 66 cents per share for the quarter, according to financial markets data firm Refinitiv.

Dan Healing, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Crown declines to lay charges in Castlegar spree

RCMP were called to eight incidents regarding the same person in a six hour time frame.

Snowfall warning for Kootenay and Paulson passes

Up to 30 cm expected in mountain passes Saturday and Sunday.

Moose tests positive for Chronic Wasting Disease in northwest Montana

This is the first time the disease has been detected in the species in Montana

Community Futures launches cannabis consultation program

The Cannabis Business Transition Initiative helps businesses move into the legal economy

Police seize drugs, weapons and cash from Christina Lake residence

One man was arrested when RCMP executed a search warrant on Nov. 14

Cold, stormy winter forecast across much of Canada, The Weather Network predicts

In British Columbia temperatures will be slightly above normal and precipitation will be just below normal

B.C. woman ordered to return dog to ex-boyfriend for $2,000

After the two broke up, documents state, they agree to share custody of the dog, named Harlen

B.C. petition calls for seat belts in new school buses

Agassiz bus driver collects 124,000 signatures in support

Abbotsford police chief mulls more enforcement of homeless lawbreakers

‘When all else has failed we have to hold people accountable,’ Police Chief Mike Serr tells council

Government needs to step up to address $10M RCMP budget deficit: Morrison

Kootenay-Columbia MP Rob Morrison says governments need to ensure rural communities are protected

Striking Vancouver hotel workers, employer reach ‘tentative’ agreement

Employees of the Rosewood Hotel Georgia have been out at picket lines since talks broke off on Sept. 21

RCMP cut free activists chained to Kelowna bank, placed under arrest

The group is protesting Interior Savings Credit Union’s support of Kelowna Ribfest

Cell phone tickets worse tax grab than speed limits, SenseBC says

Distracted driving statistics questioned as B.C. tickets pile up

Most Read