On July 28, Vancouver, Canada-based metallurgical coal and zinc producer Teck Resources Limited issued its financial results for the second quarter of 2010, stating that the company benefited from a substantial increase in coal sales and the higher benchmark prices in the second quarter.
According to the financial results, the net profit of the company was CA$260 million (US$ 252 million) in the second quarter of 2010, compared with a net profit of CA$570 million in the second quarter of 2009, decreasing 54 percent. The net income in the last year's second quarter benefited from a large foreign exchange-related gain and assets sales.
Sales revenues in the second quarter of 2010 saw an increase of 24 percent, rising from CA$1.7 billion in the corresponding period of the previous year to CA$2.1 billion (US$2 billion).
The EBITDA of the company was CA$844 million (US$819 billion) in the second quarter of 2010, compared with an EBITDA of CA$1.2 billion in the second quarter of 2009, decreasing 30 percent.
Second quarter coal sales volumes of 6.4 million mt increased by 29 percent compared with the second quarter of 2009
Commenting on the results, Teck president and CEO Don Lindsay said, "During the quarter we eliminated the outstanding balance of our term bank loan and have now repaid the US$9.8 billion bank debt related to the Fording acquisition in less than 18 months, just over two years ahead of schedule. In addition, all of our operations performed well, and we met or exceeded the guidance given in our previous quarterly report."