Power and coal drive Teck higher

Vancouver — The first quarter of 2001 was a banner one for diversified miner, Teck (TEK-T). The major’s own operations earned $17 million, while its 50.1% stake in Cominco (CLT-T) added another $38 million for a total of $55 million, or 51 per share, in the three months ended March 31.

This compares to $7 million, or 6 per share, in the corresponding period last year.

Driving the impressive growth were a consolidation of the company’s interest in Cominco (which was equity-accounted in the year-ago period) and a turnaround in coal operations.

Operating profits from power sales contributed $124 million, compared with $2 million a year ago.

Coal operations generated profits of $14 million, up significantly from a loss of $1 million in the first quarter of 2000. The increase was due to higher sales volumes, lower operating costs and a weak Canadian currency.

Gold operations cranked out 138,000 oz. during the quarter, a slight drop from the 139,000 produced in the corresponding period of 2000. Drops in production at the Hemlo and David Bell mines in Ontario were partially offset by the start of commercial production at the Carosue Dam in Australia. Cash operating costs also increased to US$206 per oz., up from US$189 per oz. a year earlier.

Copper and zinc sales jumped following the consolidation of Cominco’s 50% interest in the Highland Valley copper operation in B.C., the Red Dog zinc mine in Alaska, the Sullivan zinc mine in B.C. and the Polaris zinc mine in the Northwest Territories. Copper sales soared to 82 million lbs. from 29 million lbs. in the year-ago period and zinc jumped to 376 million lbs. from 17 million lbs.

On the development front, the Pogo gold deposit in Alaska is moving ahead with permitting and a feasibility study. The gigantic Antamina zinc project in Peru remains on budget. Mechanical completion is expected by June.