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Teck Resources' (TECK) Q1 Steelmaking Coal Sales Improve Y/Y

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Teck Resources Ltd. (TECK - Free Report) provided an update on its first-quarter 2023 steelmaking coal sales volumes and realized prices.

TECKs’ steelmaking coal sales were 6.2 million tons in the March-end quarter, up from the 6 million tons reported in the year-ago quarter. The figure was also within the company’s guidance of 6-6.4 million tons.

Teck benefited from strong realized prices in the quarter. The company's steelmaking coal business continues to generate significant cash and potential. In February 2023, the company announced the spin-off of the steelmaking coal business and the reorganization of its business to separate into two independent, publicly-listed companies — Teck Metals Corp. and Elk Valley Resources Ltd.

The average realized steelmaking coal price for the first quarter was $282 per ton. This compares with $357 per ton in the first quarter of 2022. TECK expects to report provisional pricing adjustments of positive $25 million in its first-quarter 2023 results. Teck Resources is scheduled to report its first-quarter results on Apr 26, 2023.

In the fourth quarter of 2022, the company’s Steelmaking Coal segment reported sales of CAD$1,676 million ($1242 million), reflecting a year-over-year decline of 27%. The segment reported a gross profit of CAD$849 million ($629 million), down 42% from the fourth quarter of 2021. The results bore the impacts of lower realized steelmaking coal prices, a two-month plant outage at Elkview Operations and the impacts of extreme weather in December on the logistics chain.

Price Performance

Shares of Teck Resources have gained 7.9% in the past year against the industry's decline of 25.2%.

 

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Zacks Rank & Stocks to Consider

Teck Resources currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Olympic Steel Inc. (ZEUS - Free Report) , Steel Dynamics (STLD - Free Report) , and Alamos Gold Inc. (AGI - Free Report) . ZEUS and STLD currently flaunt a Zacks Rank #1 (Strong Buy), and AGI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Olympic Steel’s fiscal 2023 earnings per share is pegged at $3.50. Earnings estimates have moved 61% north in the past 60 days. ZEUS has a trailing four-quarter earnings surprise of 26.2%, on average. Its shares have gained 34.6% in the past year.

The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $15.42 for 2023. Earnings estimates have been revised 32.8% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 11.2%, on average. The company has gained 27.1% in a year.

The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at $0.44 for 2023. Earnings estimates have been revised 12.8% upward in the past 60 days. AGI has gained 50% in a year.

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