Coal sales interrupted by heavy snow, extreme cold, rain, warns Teck Resources
The Vancouver-based miner says rail and terminal performance has been adversely affected by heavy snow and extreme cold in January
VANCOUVER — Shares in Teck Resources Ltd. fell by as much as 3.2% after it warned sales of steelmaking coal in the current quarter are down due to bad weather in British Columbia.
Its stock fell as low as $18.40 in trading in Toronto on Feb. 6, down from their $19.01 close on Feb. 5. They set a 52-week high of $34.32 last April.
The Vancouver-based miner says rail and terminal performance has been adversely affected by heavy snow and extreme cold in January, while rock and mud slides have affected rail lines and adjacent highways. It says ongoing heavy rains have delayed remediation work.
Teck estimates sales in the three months ended March 31 will be off by about one million tonnes, resulting in total sales of 5.1 to 5.4 million tonnes.
It says coal inventory levels are high and could further limit production if weather doesn’t improve.
Meanwhile, Teck says the raw coal feed belt at its Elkview mine in B.C. experienced a mechanical failure which is expected to prevent raw coal processing through the plant for two weeks.