Canadian miner Teck Resources Ltd (TCKb.TO) (TCK.N) reported better-then-expected quarterly revenue on Thursday due to higher prices for steelmaking coal, and raised its production forecast for the year.
Teck, the largest producer of steelmaking coal in North America, said it expected production for the year to be about 27-27.5 million tonnes, compared with its previous forecast of 26-27 million tonnes.
U.S.-listed shares of Teck were up 2.95 per cent at US$21.64 in light premarket trading.
"We are encouraged by the improved commodity price environment, but remain cautious about how long the supply/demand imbalance will last," the company said in a statement.
For the current quarter, the company forecast total steelmaking coal sales to be at least 6.5 million tonnes.
Teck said it expected unit costs to rise in the fourth quarter as it plans to increase the use of contractors and higher cost equipment to maximize production.
The company said the construction of the Fort Hills oil sands project in northern Alberta was more than 70 per cent complete. Teck owns a 20 per cent stake in the 180,000 barrel-per-day project, which is majority-owned by Suncor Energy Inc (SU.TO)
The Vancouver-based company's revenue rose 9.7 per cent to $2.31 billion (US$1.73 billion) in the third quarter, above analysts' average estimate of $2.22 billion, according to Thomson Reuters I/B/E/S.
The miner said it sold 7.3 million tons of coal in the quarter ended Sept. 30, exceeding its own forecast for at least 6.8 million tons.
Average realized price for steelmaking coal rose to $120 per ton in the quarter from $116 a year earlier.
Net profit attributable to Teck shareholders was $234 million, or 40 Canadian cents per share, for the quarter, compared with a loss of $2.15 billion, or $3.73 per share, a year earlier when Teck took an impairment charge of $2.2 billion related to the writedown of its assets.
Excluding items, Teck earned 26 Canadian cents per share in the latest reported quarter, missing analysts' estimate of 28 Canadian cents.
Teck said on Thursday its total operating costs fell 7.3 per cent to $800 million in the third quarter.