VANCOUVER — Shares in Teck Resources Ltd. fell by as much as 3.2 per cent 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 Thursday, down from their $19.01 close on Wednesday. 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.
This report by The Canadian Press was first published Feb. 6, 2020.
Companies in this story: (TSX:TECK)
The Canadian Press