- Teck Resources (TCK) -3.7% premarket after reporting weaker than expected Q1 earnings and revenues plus a big dividend cut.
- TCK said average realized prices for coal fell 19% to $106/metric ton in Q1 from $131 a year earlier, while average realized prices for copper fell more than 17% to $2.64/lb. from $3.19; partly offsetting the drop in commodity prices was a stronger U.S. dollar, as TCK’s products are sold in U.S. dollars while most of its expenses are incurred in local currencies including the Canadian dollar.
- TCK says the lower payout to its shareholders, which drops to C$0.15/share from C$0.45, will ensure that it maintains its financial strength and flexibility.
- TCK says all milestones are being met at its primary development project, the Fort Hills oil sands project, in which it holds a 20% stake.
- Says its cash balance at April 20 was C$1.4B, in line with its goal of ending the year with at least C$1B in cash.