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Diversified Vancouver miner Teck Resources Ltd. (TSX:TCK.A, B, NYSE:TCK) has emerged from a spot of trouble earlier this year with record third-quarter revenue, enviable net earnings and a sizable reduction of debt. The company reported record revenue in 2009's third quarter of $2.1 billion and on a year-to-date basis of $5.5 billion. Much of the increases came from Teck's copper, coal and zinc business units. Operating profit before depreciation in the quarter was approximately $1.0 billion, compared with $798 million last year, and on a year-to-date basis operating profit before depreciation was $2.6 billion compared with $2.5 billion in 2008. Net earnings in the quarter were $609 million compared with $424 million in 2008's third quarter. Teck's difficulties were associated with its US$14 billion acquisition of Fording Canadian Coal Trust's assets last year. The acquisition was made at the top of the market just as commodity prices and global markets plunged. The company has since paid US$5.81 billion of its bridge debt and reduced its US$4 billion of term debt to US$2.7 billion. "Our major operations continue to perform well and produced record revenues of $2.1 billion in the third quarter, despite coal and zinc prices that were less than 50% of previous highs," said Don Lindsay, Teck's president and CEO. Teck sold off various assets over the course of the year to pay down its debt, which Lindsay said will be reduced further upon the completion of previously announced asset sales expected later this year and in early 2010. Earlier this year, a state-owned Chinese investment company paid US$1.5 billion for a stake in the company, which Teck also used to pay down debt. Teck said the markets in which it sells its products have improved over the quarter, with base metal prices rising significantly. Demand for coal also increased, particularly in Asia. Teck's coal production levels, which were reduced in the first half of 2009 as a result of reduced demand from customers, increased in the third quarter. It sold 5.7 million tonnes of coal in the quarter and expects sales for the year to be in the range of 19.5 million to 20.5 million tonnes. However, while general economic conditions continue to improve and stability appears to be returning to financial and commodity markets, it said significant uncertainty concerning the short- and medium-term global economic outlook persists. Teck's "B" shares on the Toronto Stock Exchange were trading at $31.02 by press time, down from $35.75 a week earlier. In March, the shares hit a low of $3.35.
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