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

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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kootenay-Columbia MP Rob Morrison speaks during Question Period in the House of Commons. File photo.
MP Morrison calls Keystone XL permit cancellation ‘devastating news’

Kootenay-Columbia MP reacts to the Conservative Party’s removal of a controversial Ontario MP

Interior Health reported 91 new COVID-19 cases in the region Jan. 20, 2021 and three additional deaths. (Jennifer Smith - Morning Star)
95 new COVID-19 cases in Interior Health, two deaths

Another member of Vernon’s Noric House has passed

It was a quiet week for COVID-19 cases in the West Kootenay. Illustration: B.C. Centre for Disease Control
Two new cases of COVID-19 in Nelson area

The cases were confirmed for the week of Jan. 10 to 16

The Nelson and District Community Complex ice has mostly been empty this season with the Nelson Leafs’ season on hold due to the pandemic. File photo
Six Nelson sports groups included in provincial grant

The Local Sports Relief Fund is meant to offset pandemic-related expenses

Businesses continue to struggle under COVID-19 restrictions as the pandemic reaches the one-year mark. (B.C. government)
Another 564 COVID-19 cases, mass vaccine plan coming Friday

15 more deaths, community cluster declared in Williams Lake

A specialized RCMP team is investigating a suspicious trailer, which might have connections to the illicit drug trade, found abandoned outside a Cache Creek motel. (Photo credit: <em>Journal</em> files)
Police probe U-Haul trailer linked to illicit drugs left outside Cache Creek motel

Hazardous materials found inside believed to be consistent with the production of illicit drugs

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

From the left: Midway RCMP Csts. Jonathan Stermscheg and Chris Hansen, Public Servant Leanne Mclaren and Cpl. Phil Peters. Pictured in the front are Mclaren’s dog, Lincoln and Peters’ dog, Angel. Photo courtesy of BC RCMP
Midway Mounties commended for bringing firewood to elderly woman

Cpl. Phil Peters said he and detachment members acted after the woman’s husband went to hospital

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Interprovincial travel restrictions a no-go, Horgan says after reviewing legal options

The B.C. NDP government sought legal advice as concerns of travel continue

Gem Lake Top, at Big White Ski Resort, seen at Jan. 8. (Big White Ski Resort)
Big White cancels $7.3M in lift tickets, accommodations due to COVID-19 orders

Since November, the ski resort has been forced to make several changes

Darlene Curylo scratched a $3M ticket, BCLC’s largest ever scratch and win prize. (BCLC)
Kelowna woman in shock after winning BCLC’s largest-ever instant-ticket prize

Darlene Curylo couldn’t believe her eyes when she saw the amount of money she’d won from a scratch ticket

While each person has different reasons for becoming homeless, a UBCO study shows they learn through their interactions with different services to perform ‘as homeless’ based on the expectations of service providers. (Contributed)
Kelowna homeless forced to ‘perform’ for resources, says UBCO study

One participant in the study said ‘It is about looking homeless, but not too homeless’

Gov. Gen. Julie Payette takes the royal salute from the Guard of Honour as she makes her way deliver the the throne speech, Wednesday, September 23, 2020 in Ottawa. THE CANADIAN PRESS/Fred Chartrand
Gov. Gen. Julie Payette resigns, apologizes for ‘tensions’ at Rideau Hall

Payette, who is the Queen’s representative in Canada, has been the governor general since 2017

Most Read