- Teck (TECK.B) has experienced delayed transportation due to rail service disruption
- Coal sales will be down 5.2 – 5.7 million tonnes in Q4
- Shipments to the Lower Mainland have been diverted to Prince Rupert
- Transportation costs are expected to be higher
- Teck’s (TECK.A/TECK.B) shares are down by 1.37 per cent and up by 1.45 per cent respectively, and are being traded at $36.51 and $33.53 respectively, as of 11:59 AM EST
Teck’s (TECK.A/.B) steelmaking coal sales are down due to rail disruption.
Rail service between west coast terminals and Teck’s B.C. operations continue to be affected by CN and CP’s reduced operating level. Recent heavy rains and flooding continue to affect rail service.
Teck estimates its Q4 steelmaking coal sales to be 5.2 – 5.7 million tonnes, significantly less than 6.4 – 6.8 million tonnes in the previous quarter.
Shipments to the Neptune and Westshore terminals in the Lower Mainland have been diverted to the Ridley Terminals in Prince Rupert. This will affect transportation costs.
Teck expects that once CN and CP restore rail service, delayed fourth-quarter sales can be recovered in 2022.
Clean coal is stockpiling at locations due to strong logistics chain performance leading up to severe weather.
Teck expects transportation costs to be between $44 and $46 per tonne in 2021. Increased costs can be offset by strong steelmaking coal prices through the end of 2021.
There has been no impact on copper production, but up to 4,500 tonnes are at risk of being delayed into the first quarter due to the logistics chain disruption.
Teck’s (TECK.A/TECK.B) shares are down by 1.37 per cent and up by 1.45 per cent respectively, and are being traded at $36.51 and $33.53 respectively, as of 11:59 AM EST.
