Download/view Q4 2009 Report for the full text of this release (164KB PDF)

Excerpt:

Vancouver, BC – Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) announced net earnings of $1.8 billion, or $3.42 per share, for 2009 and $411 million, or $0.70 per share, in the fourth quarter. Our operating profit before depreciation was approximately $3.7 billion for the year and $1.0 billion in the quarter.

Don Lindsay, President and CEO said, "Our record revenues this year reflected strong performance across the company, including record production of copper at Quebrada Blanca and zinc at both Red Dog and Antamina. Including the application of the proceeds from the sale of an interest in the Waneta Dam of $825 million, we will have reduced our total debt by approximately $6.7 billion since we acquired the Fording coal assets in October, 2008. With our current cash balance of $1.3 billion, our net-debt to net-debt-plus-equity ratio is then expected to be approximately 26%.”

Highlights and Significant Items

• Operating profit before depreciation for the year was $3.7 billion compared with $2.8 billion in 2008. Operating profit before depreciation in the fourth quarter was approximately $1.0 billion compared with $347 million a year ago.

• Net earnings for the year were our second highest ever at $1.8 billion compared with $659 million last year. Net earnings in the quarter were $411 million compared with a net loss of $607 million in the fourth quarter of 2008.

• EBITDA was $4.1 billion for the year and $1.0 billion in the fourth quarter.

• We recorded record revenues in the full year and the fourth quarter of 2009 of $7.7 billion and $2.2 billion, respectively.

• Our non-core asset sales program, which includes the previously announced sale of our gold business, is nearly complete. The assets sold account for less than 5% of our total assets. Asset sales completed since we issued our third quarter results, yielding cash proceeds totalling US$370 million, include:

­- the sale of an interest in the future gold production from our Andacollo mine to Royal Gold closed in January, 2010 providing Andacollo with cash of US$218 million and 1.2 million common shares of Royal Gold, of which our share is 90%,

­- our 60% interest in the Agi Dagi and Kirazli gold projects in Turkey closed in January, 2010. We received US$24 million and 2.4 million shares of Alamos Gold Incorporated, and

­- our 78.8% interest in the Morelos gold project in Mexico to Gleichen Resources Ltd. for US$150 million in cash and approximately 1.6 million common shares and 12.4 million special warrants of Gleichen closed in November, 2009.

• The sale of one-third of our interest in the Waneta Dam for C$825 million is now scheduled to close in February. Upon completion, our total debt will be down to C$6.7 billion from the $13.4 billion at the time we acquired the Fording coal assets. Our term loan will be US$1.14 billion and our cash balance is expected to be approximately C$1.3 billion. Our net debt to net-debt-plus-equity ratio will be approximately 26%, a significant improvement from the 52% ratio at December 31, 2008. With amendments made to the term loan, our remaining scheduled term loan payments are expected to be approximately US$440 million in 2010, US$420 million in 2011 and US$280 million in 2012.

• The Carmen de Andacollo concentrator project achieved mechanical completion at the end of the fourth quarter of 2009. First ore was sent to the crusher on December 6, 2009 and first ore to the mill January 19, 2010. The process water supply issues have been resolved and the project is scheduled for commissioning in the first quarter. Design capacity is expected to be reached during the first half of 2010.The new plant is expected to produce 80,000 tonnes of copper and 55,000 ounces of gold in concentrate annually over the first 10 years of the project.

• In December we announced that our coal production is planned to increase by 25% to 30% in 2010 to 23.5 – 25 million tonnes.

• We are pleased to support the “Zinc Saves Kids” campaign launched by UNICEF and the IZA during the recent World Economic Forum. Zinc is essential for all living organisms and is vital for brain development, growth and immune functions in children. According to the World Health Organization, zinc deficiency is one of the leading risk factors associated with diseases such as malaria, pneumonia and diarrhea. It is estimated that 800,000 deaths per year are attributed to zinc deficiency, of which 450,000 are children under the age of five. 

Download/view Q4 2009 Report for the full text of this release (164KB PDF)   This news release is dated as at February 8, 2010. Unless the context otherwise dictates, a reference to “Teck,” “the company,” “us,” “we,” or “our” refers to Teck and its subsidiaries. Additional information, including our annual information form and management’s discussion and analysis for the year ended December 31, 2008, is available on SEDAR at www.sedar.com. This document contains forward-looking statements. Please refer to the cautionary language under the heading “CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION” below.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws. All statements other than statements of historical fact are forward looking statements. These forward-looking statements, principally under the heading “Outlook,” but also elsewhere in this document, include estimates, forecasts, and statements as to management’s expectations with respect to, among other things, our future production, earnings and cash flow, our plans to reduce our outstanding indebtedness, potential sources of funds to repay indebtedness, our sales of assets that have yet to close, our plans for our oil sands investments and other development projects, forecast production, costs and the resolution of geotechnical issues at Highland Valley Copper, expected progress and costs of our Andacollo concentrate and Antamina expansion projects, the sensitivity of our earnings to changes in commodity prices and exchange rates, the potential impact of transportation and other potential production disruptions, the impact of currency exchange rates, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital expenditures and mine production costs, demand and market outlook for commodities, future commodity prices and treatment and refining charges, the settlement of coal contracts with customers, access to and treatment and disposal of process water at our operations, the outcome of mine permitting currently underway, particularly our ability to obtain the permits necessary for the development at the Aqqaluk deposit at our Red Dog mine and the risk of the stay of a critical permit as a result of an appeal, and the outcome of legal proceedings involving the company. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially.

These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, interest rates, the supply and demand for, deliveries of, and the level and volatility of prices of, zinc, copper and coal and other primary metals and minerals as well as oil, and related products, the timing of the receipt of regulatory and governmental approvals for our development projects and other operations, our costs of production and production and productivity levels, as well as those of our competitors, power prices, market competition, the accuracy of our reserve estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, conditions in financial markets and the future financial performance of the company. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially.

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices, changes in interest and currency exchange rates, acts of foreign governments and the outcome of legal proceedings, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters), political risk, social unrest, failure of customers or counterparties to perform their contractual obligations, changes in our credit ratings, and changes or further deterioration in general economic conditions.

Statements concerning future production costs or volumes, and the sensitivity of the company’s earnings to changes in commodity prices and exchange rates are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies.

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks and uncertainties associated with these forward looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2008, filed on SEDAR and on EDGAR under cover of Form 40F.

WEBCAST

Teck will host an Investor Conference Call to discuss its Q4/2009 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on Tuesday, February 9, 2010. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast is also available at www.earnings.com. The webcast will be archived at www.teck.com.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.