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Teck Resources (TECK) Q2 Steelmaking Coal Sales Down Y/Y
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Teck Resources Limited (TECK - Free Report) provided an update on its second-quarter 2023 steelmaking coal sales volumes and realized prices.
Teck Resources’ second-quarter steelmaking coal sales were 6.2 million tons in the June-ended quarter, lower than the volume of 6.3 million reported in the year-ago quarter. The figure matched the low end of the company's guidance which was in the band of 6.2-6.6 million tons.
Teck Resources reported an average realized steelmaking coal price of $264 per ton in the second quarter of 2023. This marked a fall in steelmaking coal prices from $282 per ton in the first quarter of 2023. TECK expects to report provisional pricing adjustments of negative $105 million in its second-quarter 2023 results, scheduled to be reported on Jul 27, 2023.
Teck Resources recently announced that it has been receiving interest from various parties involving deals regarding its steelmaking coal business. The business is garnering interest due to its significant high-quality steelmaking coal reserves and its stable demand outlook, which enables it to support steel production, as well as transition to a low-carbon economy.
Teck Resources stated that its board of directors and an independent Special Committee, along with financial and legal advisors, will continue to consider and evaluate these proposals. They will assess the proposals which are in the best interests of the company’s shareholders and other stakeholders. TECK however added that there is no assurance at this time that any strategic outcome or a deal will materialize from these discussions.
In February 2023, Teck Resources announced the spinoff of the steelmaking coal business and its intention to reorganize its business into two independent, publicly-listed companies which are Teck Metals Corp. and Elk Valley Resources Ltd. A special meeting of shareholders was to be held on Apr 26, 2023, to vote on the proposal.
However, Teck Resources called off the meeting and announced that it has decided not to proceed with the consideration of the proposal by its shareholders. The company stated that it plans to pursue a simpler and more direct separation to unlock full value for its shareholders.
In the first quarter of 2023, the Steelmaking Coal segment reported sales of CAD$2,406 million ($1,782 million), reflecting a year-over-year decline of 13%. The segment reported a gross profit of CAD$1,277 million ($946 million), which was down 28% from the first quarter of 2022.
Teck Resources expects steelmaking coal production between 24 million tons and 26 million tons for 2023.
Price Performance
Shares of Teck Resources have gained 58.6% in the past year, compared with the industry's 4.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Teck Resources currently carries a Zacks Rank #3 (Hold).
Carpenter Technology has an average trailing four-quarter earnings surprise of 30.9%. The Zacks Consensus Estimate for CRS’s fiscal 2023 earnings is pegged at $1.04 per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares have gained 111.9% in the last year.
Orla Mining has an average trailing four-quarter earnings surprise of 85.4%. The Zacks Consensus Estimate for ORLA’s 2023 earnings is pegged at 15 cents per share. The consensus estimate for 2023 earnings has moved 87.5% north over the past 60 days. ORLA’s shares gained 48% in the last year.
The Zacks Consensus Estimate for Osisko Gold Royalties’ fiscal 2023 earnings per share is pegged at 47 cents. Earnings estimates have moved 6.8% north in the past 60 days. OR’s shares have gained 50.9% in the past year.
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Teck Resources (TECK) Q2 Steelmaking Coal Sales Down Y/Y
Teck Resources Limited (TECK - Free Report) provided an update on its second-quarter 2023 steelmaking coal sales volumes and realized prices.
Teck Resources’ second-quarter steelmaking coal sales were 6.2 million tons in the June-ended quarter, lower than the volume of 6.3 million reported in the year-ago quarter. The figure matched the low end of the company's guidance which was in the band of 6.2-6.6 million tons.
Teck Resources reported an average realized steelmaking coal price of $264 per ton in the second quarter of 2023. This marked a fall in steelmaking coal prices from $282 per ton in the first quarter of 2023. TECK expects to report provisional pricing adjustments of negative $105 million in its second-quarter 2023 results, scheduled to be reported on Jul 27, 2023.
Teck Resources recently announced that it has been receiving interest from various parties involving deals regarding its steelmaking coal business. The business is garnering interest due to its significant high-quality steelmaking coal reserves and its stable demand outlook, which enables it to support steel production, as well as transition to a low-carbon economy.
Teck Resources stated that its board of directors and an independent Special Committee, along with financial and legal advisors, will continue to consider and evaluate these proposals. They will assess the proposals which are in the best interests of the company’s shareholders and other stakeholders. TECK however added that there is no assurance at this time that any strategic outcome or a deal will materialize from these discussions.
In February 2023, Teck Resources announced the spinoff of the steelmaking coal business and its intention to reorganize its business into two independent, publicly-listed companies which are Teck Metals Corp. and Elk Valley Resources Ltd. A special meeting of shareholders was to be held on Apr 26, 2023, to vote on the proposal.
However, Teck Resources called off the meeting and announced that it has decided not to proceed with the consideration of the proposal by its shareholders. The company stated that it plans to pursue a simpler and more direct separation to unlock full value for its shareholders.
In the first quarter of 2023, the Steelmaking Coal segment reported sales of CAD$2,406 million ($1,782 million), reflecting a year-over-year decline of 13%. The segment reported a gross profit of CAD$1,277 million ($946 million), which was down 28% from the first quarter of 2022.
Teck Resources expects steelmaking coal production between 24 million tons and 26 million tons for 2023.
Price Performance
Shares of Teck Resources have gained 58.6% in the past year, compared with the industry's 4.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Teck Resources currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Orla Mining Ltd. (ORLA - Free Report) and Osisko Gold Royalties Ltd (OR - Free Report) . CRS and ORLA sport a Zacks Rank #1 (Strong Buy) at present, and OR has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 30.9%. The Zacks Consensus Estimate for CRS’s fiscal 2023 earnings is pegged at $1.04 per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares have gained 111.9% in the last year.
Orla Mining has an average trailing four-quarter earnings surprise of 85.4%. The Zacks Consensus Estimate for ORLA’s 2023 earnings is pegged at 15 cents per share. The consensus estimate for 2023 earnings has moved 87.5% north over the past 60 days. ORLA’s shares gained 48% in the last year.
The Zacks Consensus Estimate for Osisko Gold Royalties’ fiscal 2023 earnings per share is pegged at 47 cents. Earnings estimates have moved 6.8% north in the past 60 days. OR’s shares have gained 50.9% in the past year.