Canadian miner Teck Resources Ltd reported a more than 80% fall in second-quarter adjusted profit on Thursday, as the COVID-19 pandemic hurt demand for its products and squeezed prices.
Miners around the world, including Teck, have been reeling from the impact the pandemic has wreaked on the commodities market, with some companies forced to cut production and suspend construction.
Teck, which produces copper, zinc and coking coal, issued an updated forecast for the second half of 2020. The company in April suspended its 2020 outlook, citing the impact from the coronavirus outbreak.
The miner, which said all its operations are currently producing with COVID-19 preventive measures in place, now expects to produce 11 million tonnes to 12 million tonnes of steelmaking coal, and 145,000 tonnes to 160,000 tonnes of copper during the second half of the year.
It also forecast zinc production between 315,000 tonnes and 345,000 tonnes.
The company said construction at a massive copper project in Chile remained partially suspended to limit transmission of the fast-spreading virus.
Vancouver-based Teck said adjusted profit attributable to shareholders fell to C$89 million ($66.45 million), or C$0.17 per share, in the three months ended June 30, from C$498 million, or C$0.88 per share, a year earlier.
Revenue dropped 45% to C$1.72 billion. The company sold 5 million tonnes of steelmaking coal, higher than its previous forecast, as Chinese steel production returned to pre-coronavirus levels during the reported quarter.
($1 = 1.3394 Canadian dollars)
(Reporting by Radhika Anilkumar, Shanti S Nair and Arathy S Nair in Bengaluru; Editing by Vinay Dwivedi and Shounak Dasgupta) ((Radhika.Anilkumar@thomsonreuters.com; +91 8067490824;))