Teck Resources' Amazing Turnaround: Copper and Coal Boost Earnings

Kevin Barker submits: Last year I said Teck Resources (NYSE: TCK, TSX) would get a lot bigger or a lot smaller owing to the spectacular debt it was carrying. It did neither.

By James Goodwin:Teck Resources (TCK) is a diversified miner with a heavy emphasis on coal, copper and zinc. It will need strong metallurgical coal prices to repeat its results. (All amounts are Canadian dollars, which is currently just about at par with the US dollar. Tonnes as well - 1 tonne to 1.1 tons.)

When Teck Resources Ltd. holds its quarterly earnings conference calls, chief executive Don Lindsay is always asked about acquisition opportunities. His usual response is that Teck is looking, but price tags are too high. That changed on Thursday’s call. He acknowledged that values have come down in recent months and more assets have come available. That includes projects in the iron ore sector, an industry that Teck has been eager to break into for years.

Teck Resources Ltd , Canada’s largest diversified miner, reported a 40% fall in first-quarter adjusted profit due to lower coal prices, and said economic uncertainty may affect prices and shipments. On an adjusted basis, the company’s earnings fell to $328 million, or 56 cents per share, from $544 million, or 93 cents per share, a year earlier.

Lower coal prices took a big bite out of fourth quarter earnings at Teck Resources Ltd., but the numbers still came in well above expectations. Canada’s largest diversified miner reported adjusted earnings of $354-million, or $0.61 a share. That was down 54% from the $1.04 per share that Teck earned in the fourth quarter of 2011, but topped the consensus analyst estimate of $0.48 a share.

Vancouver, Canada-based Teck Resources (NYSE: TCK) is a diversified miner with exposure to three main markets: metallurgical (or "met") coal, copper and zinc.

Teck Resources Limited (TCK) Q4 2010 Earnings Call Transcript February 9, 2011 10:00 am ET Executives Greg Waller – VP, IR and Strategic Analysis Don Lindsay – President and CEO Ron Millos – SVP, Finance and CFO Roger Higgins – SVP, Copper Bob Bell – VP and Chief Commercial Officer, Coal Tim Watson – SVP, Project Development

CALGARY — Suncor Energy Inc. on Monday announced a 54% dividend hike, a $2-billion share buyback and better first-quarter operating earnings that were boosted by strong oil sands production and refining margins. Canada’s largest energy company says its quarterly dividend will rise to 20 cents per share from 13 cents. The dividend is payable June 25 to shareholders of record at the close of business June 4.