Teck posted a $2 million loss in Trail in the third quarter of this year along with lower-than-expected zinc production due in part to problems with receiving shipments.
According to the company’s earnings statements issued this morning, that was compared to a $31 million loss registered in Trail in the same period of last year. Year-to-date, the company has still had a gross profit of $20 million, compared to a $24 million loss during the first nine months of 2022.
The Trail operation had earnings of $468 million between July and September 2023, compared to $502 million during the same period of 2022. Year-to-date revenue is $1.49 billion compared to $1.7 billion last year.
Operating costs in Trail were $156 million in the third quarter, versus $175 million last year, with the decrease attributed to planned maintenance in 2022. Year-to-date operating costs were $480 million, practically the same as the $477 million posted last year.
The company said refined Trail’s zinc production was up five per cent and sales volumes were slightly higher than a year ago. However, production was still lower than expected because two concentrate suppliers weren’t able to make shipments. Teck said it would normally buy from an alternate source but it wasn’t affordable. One of the suppliers resumed shipping this month.
Refined lead production was about the same as last year and continues to be affected by the KIVCET boiler, which is nearing the end of its life and is expected to be replaced next year. Teck spent $20 million on improvements in Trail in the third quarter.
Company-wide, Teck is reporting a gross profit of $831 million in Q3 (versus $1.8 billion during the same period of 2022) and a year-to-date gross profit of $3.9 billion (versus $7.4 billion last year).