NEW YORK Teck Resources Ltd.s third-quarter earnings rose on higher zinc and lead production and sales volumes, even though copper production declined. The diversified miner also benefited from favorable moves in exchange rates.
The Vancouver, British Columbia-based company posted net income of Canadian $267 million ($256.1 million) for the three months ended Sept. 30, up 4.3 percent from C$256 million in the same period a year earlier, on sales that inched up 0.8 percent to more than C$2.52 billion ($2.42 billion).
Third-quarter output of refined zinc and zinc concentrate rose 6.4 percent to 233,000 tonnes and zinc concentrate sales jumped 21.7 percent to 191,000 tonnes, while lead concentrate sales climbed 30.4 percent to 60,000 tonnes.
Copper production fell to 91,000 tonnes, down 8.1 percent from a year ago, but Teck still expects to hit its 2013 production forecast. Dale Andres, senior vice president for copper, said the company expects to offset a decline in grades at its copper mines with higher production rates.
Teck continues to see a strong zinc market as the U.S. galvanizing industry is running well due to strong automotive demand.
"Were starting to see metal drawdown on the London Metal Exchange. The demand side is shaping up very well; the North American galvanizing lines are running at very strong rates," said Andrew Golding, senior vice president for corporate development.