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Oct 26, 2017

Teck Resources third-quarter profit surges on higher coal, metal prices

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Canada's Teck Resources Ltd (TECKb.TO) the world's second-biggest exporter of steelmaking coal, said its third-quarter profit more than doubled from a year ago, lifted by higher coal and metal prices.

Teck, which also mines copper, zinc and gold, said attributable profit rose to $600 million, or $1.04 per share in the three months to end-September from $234 million, or 41 cents per share in the same year-ago period.

Adjusted profit was $621 million, or $1.08 per share, for the quarter, versus $152 million, or 26 cents per share, in the same period last year.

On average, analysts had expected Vancouver-based Teck to report earnings of $1.19 a share, according to Thomson Reuters I/B/E/S.

The increase in quarterly profit was driven by the performance of the steelmaking coal business unit, the company said.

Teck sold 7.54 million tonnes of steelmaking coal in the third quarter, marginally above its sales forecast for between 7.2 million and 7.5 million tonnes.

Teck's average third-quarter realized coal price was $159 a ton, in line with the $158-$163 a ton it had forecast on Sept. 6.

Looking ahead, Teck said it expects total coal sales, including spot sales, of 6.5 million tonnes in the fourth quarter.