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Teck net income drops 70% on lower copper, zinc prices

Keywords: Tags  Teck Resources, copper, zinc, Don Lindsay, earnings report, Suzy Waite

NEW YORK — Teck Resources Ltd.’s net income tumbled 69.6 percent to Canadian $811 million ($812.19 million) last year from a record C$2.67 billion in 2011, largely due to lower copper, zinc and coal prices, as revenue fell 10.2 percent to $10.34 billion ($10.36 billion).

The Vancouver, British Columbia-based mining company posted fourth-quarter net income of C$145 million ($145.22 million), down 77.2 percent from C$637 million in the same period a year earlier on an 8.1-percent decline in revenue to C$2.73 billion ($2.74 billion).

"Due to uncertain global economic conditions, prices for all of our major products were down compared to (2011), which resulted in lower earnings and cash flows," Don Lindsay, president and chief executive officer, said in a statement.

London Metal Exchange copper prices averaged $3.61 per pound last year vs. $4 per pound in 2011, Teck said.

Teck’s copper production totaled 373,000 tonnes last year, up 16.2 percent from 321,000 tonnes in 2011, boosted by a 15.7-percent fourth-quarter increase to 103,000 tonnes from 89,000 tonnes a year earlier.

"From an operations perspective, 2012 was a good year. Our copper production was a record, we continued to increase our steelmaking coal production and we obtained new labor agreements for a number of our operations," Lindsay said.

The company said it was able to lock in a new three-year labor agreement for workers at its copper mine in Antamina, Peru.

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