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Teck Resources Limited
Teck Resources Limited
12/20/2012 | Press release
Teck Provides Update on Coal Shipments
distributed by noodls on 12/21/2012 08:06
Vancouver, B.C. - Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) ("Teck") announced today that coal sales for the fourth quarter of 2012 are expected to exceed prior guidance of 6.2 million tonnes, and production for the first quarter of 2013 is not expected to be materially impacted by the damage to Berth 1 at Westshore Terminals. Teck will use alternative shipping options throughout the duration of the repairs at Westshore, including securing additional capacity through Neptune Terminals, Pacific Coast Terminals, Thunder Bay Terminals and Ridley Terminals. On the basis of Westshore's estimated repair schedule for Berth 1 and expected loading capacity for Berth 2, Teck expects to have total shipping capacity of approximately six million tonnes in the first quarter of 2013.
Any expected shortfall in first quarter shipping capacity is not expected to materially affect first quarter production as there is additional inventory capacity and the potential to secure further shipping capacity at the terminals. Incremental demurrage and transportation costs due to the damage at Westshore are not expected to exceed $2 per tonne for the first quarter of 2013. Further guidance on production and sales will be provided as usual in our quarterly earnings report.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). The forward-looking statements in this news release include statements concerning Teck's response to the incident at Westshore Terminals, including shifting capacity and exploring options to move capacity to other terminals. The statements that we expect to exceed our sales guidance for Q4, the sales guidance of 6.2 million tonnes for Q4 and our expectation that the incident will not have a material impact on coal production for Q1 are also forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that may cause actual results to vary from our statements include, but are not limited to, lack of available options on reasonable terms to move capacity to other terminals and unexpected difficulty or delay in shifting capacity to other terminals even if options are available, weather-related, or other restrictions on production at our mines or on rail transportation, and further operational difficulties at the terminals. Other factors, including those discussed in the prior sentence, that may cause our statement that we expect to meet or exceed sales guidance include further negative effects from the Westshore incident coming to light or developing over the course of time. Our Q4 sales guidance of 6.2 million tonnes is subject to a number of other factors, including changes in conditions in the steel market, changes in foreign exchange rates, other unplanned and unexpected disruptions in production or transportation, changes in general economic conditions or conditions in the markets for steelmaking coal, and other risk factors as detailed from time to time in Teck's reports filed with Canadian securities administrators and the U.S. Securities and Exchange Commission.
Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
About Teck
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK.
