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Teck posts $7 million Q2 loss in Trail

Teck’s Trail operation lost $7 million in the second quarter of 2022, compared to a $24 million loss the same time last year.

But for the first six months of the year, the company has still shown a $7 million profit in Trail, compared to a $2 million loss in the same period of 2021.

The company says it took a $23 million hit in inventory write-downs in Trail due to a decrease in zinc prices at the end of the second quarter.

Refined zinc production in Trail was 10 per cent higher than a year ago when maintenance was done on the zinc roaster. Lead production was also up while operating costs were up four per cent.

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This month the company and the United Steelworkers ratified a new five-year collective agreement at the Trail operation. Teck says as a result, they expect to record an expense of about $14 million in the third quarter.

Major maintenance is planned from September to November, which they expect to affect production but extend the life of some key facilities.

The KIVCET furnace will have its hearth replaced and a zinc roaster will have its dome replaced. Both have been operating for 25 years.

Company-wide, Teck is reporting a record profit before taxes of $2.7 billion between April and June.

The company has also announced that president and CEO Don Lindsay plans to retire as of Sept. 30. The board has named Jonathan Price to succeed him as CEO while Harry (Red) Conger will take over as president.

Lindsay will stay on until the second quarter of 2023 in the role of executive vice chair.

Price is currently Teck’s executive vice president and chief financial officer. He joined the company in October 2020. Conger is also an executive vice president and chief operating officer, a role he will continue to serve in. He joined Teck in September 2020.

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