Teck Resources -5% as zinc production drop drags down earnings

|About: Teck Resources Limited (TECK)|By:, SA News Editor

Teck Resources (NYSE:TECK) sinks more than 5% after reporting disappointing Q1 earnings and revenues on weakness at its zinc unit.

The unit reported Q1 gross profit of $164M on higher operating costs and a 23% drop in production at Teck's Red Dog mine due to lower grades, and Teck cut its 2017 total zinc production guidance to 590K-615K metric tons from 660K-680K metric tons previously, due to weather and electrical equipment failures at Red Dog.

Teck adds that the Q2 benchmark price for steelmaking coal has yet to be agreed upon due to the impact of Cyclone Debbie on Australian supply; it reaffirms a Q2 sales forecast of at least 6.8M metric tons of steelmaking coal.